Misrepresentation in the Stock Market
You depend on your stockbroker for vital information about your investments. If your broker does not live up to a fair level of honesty and full disclosure, it may be considered misrepresentation or omission. Any false or intentionally misleading statement made by a stockbroker designed to influence or manipulate a client is a violation of law, as is the intentional withholding of information for the same purpose.
Misrepresentation and omission can take on many different forms. Following several scandals in the late 1990s, Congress enacted the Sarbanes-Oxley Act of 2002 to ensure a higher level of disclosure. This increases the requirements for regulatory oversight and outlined disclosure requirements to better protect consumers from this type of action, but investors still face misrepresentation and omissions due to the complex ways in which unethical brokers can distort information. Some examples of actions that can become the basis for misrepresentation claims include:
- Withholding information
- Offering inside information or baseless predictions
- Failure to disclose fees or commissions
- Fraudulent account statements
- Promoting shares known to be overvalued
If you suspect that your broker is misrepresenting or omitting vital information, you have a right to pursue compensation. Our experienced stock market fraud attorneys can examine the details of your case to determine if you have a valid claim for misrepresentation.
To schedule an appointment with the stockbroker fraud attorneys of Colling, Gilbert, Wright & Carter, call (407) 712-7300 today.