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When Can You Sue for Securities Fraud?

While some losses are expected, there are brokers and investment firms who purposely mislead or cheat their clients. These “white collar” crimes have significant consequences for victims, and our attorneys work aggressively to hold the responsible party liable. Keep in mind that many brokerage firms have you sign an agreement when they take you on as a client, which may legally bind you to an arbitration clause

Some of the circumstances in which you may sue for securities fraud include: 

  • Your stockbroker made false statements to entice you to make a trade, perhaps going so far as to guarantee a high return on the investment falsely. 
  • Your stockbroker left out (omitted) critical information to persuade you into making a trade or financial decision for their or their brokerage firm’s self-interest. 
  • Your stockbroker made recommendations that were not appropriate for your interests and investment needs, which can be particularly damaging for clients who are new to the stock market and investments. 
  • Your stockbroker failed to diversify your investments and overconcentrated your portfolio by investing in too few companies and markets. 
  • Your stockbroker made one or more trades without your authorization for his or her self-interests. 
  • Your stockbroker engaged in excessive trading practices (known as churning) to increase his or her commissions. 

The stock market comes with inherent risks. A financial loss doesn’t necessarily mean your broker or investment firm broke their fiduciary duty, which requires the individual or company to act in your best interests and pursue your goals for your investments in good faith. Sometimes, poor recommendations are made, but there are stockbrokers and investment companies who put their commissions and self-interests above yours, in which case, you can sue for securities fraud. Stockbroker fraud can lead to significant financial losses, putting your retirement and finances in jeopardy. 

Unfortunately, securities fraud is under-reported because victims don’t want to admit they were “duped” by an investment firm or broker. It’s also common for securities fraud victims to blame the normal fluctuations of the stock market instead of the broker who failed to act in their best interests. 

It’s crucial to remember that you are entitled to and have the right to honest advice from your brokerage firm or stockbroker. Fraudulent investment practices and misrepresentation can lead to investment losses, and you need to seek legal counsel as soon as possible to reclaim your lost investment. 

Contact Our Securities Fraud Attorneys

Our securities fraud attorneys are available to help and offer complimentary case evaluations. If you suspect you’ve been the victim of securities fraud, contact Colling Gilbert Wright in Orlando today at (407) 712-7300 to learn more. We can help you take legal action against the responsible party and recoup your losses.