A brokerage firm or broker/advisor can be held liable if that firm or broker makes an unsuitable recommendation regarding your portfolio, a strategy or an investment. All recommendations have to be reasonable in light of the investor's goals, financial wherewithal, length of life, distance to retirement, and desire for undue risks. Recommendations have to be in the best interest of the clients, not the firm or broker. The firm and advisor must conduct significant due diligence before any recommendation. If an advisor misrepresents material facts or omits to disclose material facts to the investor regarding an investment, and that client subsequently loses money on that investment, the firm and advisor may be held liable.. Often the misrepresentations or omissions disguise the risk associated with a particular investment. A broker has a duty to fairly disclose all of the risks associated with an investment.
Institutional Investor ClaimsOur skilled investor claims attorneys work with clients in a variety of cases revolving around institutional investor claims, including pension fund mismanagement, municipal bond underwriting issues, hedge fund irregularities, and more. When a person in a position of authority, who is tasked with a duty relies on a third party to his or her detriment, action must be taken to rectify the wrongdoing. As the CFO of a Company, a Bank or a Credit Union, Board member of a Municipality, or Trustee in charge of a Pension Fund, you work hard to fulfill your obligations for the people that count on you. In that quest you sought professional guidance assuming you would receive guidance that was in your entity's best interest. That is not always the case.
Financial Product FailureThese days many people are professionally trading accounts for a living. Perhaps you are a hedge fund manager or handle the trading for a large Trust or group of individuals. You have to make quick decisions, and are highly reliant on consistently updated data. As a professional, you may also utilize algorithms and other trading strategies. Firms may not have the requisite platforms they advertised, or these entities had flawed software. Often times there are failures in execution which lead to disastrous results.