Broker Negligence Lawyer

Can You Hold Your Broker-Dealer Liable For Losses Caused By A Predecessor Brokerage Firm? Working With A Skilled Broker Negligence Lawyer Could Maximize Your Chances for Financial Recovery

If you are an investor who suffered losses because of financial advisor negligence, Shepherd Smith Edwards and Kantas Broker Negligence Lawyer (investorlawyers.com) can help you explore your legal options and determine whether you can and should sue for damages. With broker-dealers being acquired or merging with other firms, a question we have been asked is, can an investor sue the “new” broker-dealer for losses sustained under the old one? It all depends on what caused your investor losses, whether the statute of limitations have passed, and other key factors.

Recently, Osaic Services was fined $250K after its predecessor firm SagePoint Financial was found to have failed to establish a supervisory system that would have prevented excessive trading and unsuitable options trading.

According to the Financial Industry Regulatory Authority (FINRA), SagePoint allowed its inexperienced registered representatives to “override automated supervisory alerts and trading restrictions” when they took part in this type of complex trading on behalf of customers. Because of this, noted the self-regulatory organization (SRO), two customers not only paid more than $60K in commissions and costs, but also, they sustained more than $1.2M in losses.

FINRA found SagePoint disregarded red flags indicating that unsuitable treading was taking place.

Osaic acquired SagePoint in 2023.

Our Seasoned Broker Negligence Lawyer Represent Investors Against Brokerage Firms 

Shepherd Smith Edwards and Kantas Broker Negligence Lawyer teams represents investors who have suffered losses because of broker misconduct or negligence. In certain instances, we have sued broker-dealers for financial advisor fraud or negligence that occurred while the customer was working with a registered representative at a predecessor firm.

Even if FINRA or another regulator conducts its own investigation into the allegations, you may want to consider exploring your legal options regarding whether to file your own claim to sue for damages.

You want to work with knowledgeable broker fraud attorneys who know how to determine the cause of your losses, including reviewing key statements and other documents to identify where unsuitability, overconcentration, misrepresentations and omissions, unauthorized trading, failure to supervise, or gross negligence could have occurred.

Typically, when you work with a brokerage firm, they will ask you to sign a pre-dispute arbitration clause in which you agree to resolve any disputes in FINRA arbitration. Less costly and time-consuming than going to court, this is still not the type of claim you want to pursue without trusted securities lawyers on your side.

Shepherd Smith Edwards and Kantas represents retail investors, retirees, accredited investors, seniors, high-net-worth investors, and institutional investors who are owed damages by broker-dealers or their predecessor firms.  To schedule your free, initial case consultation, call (800) 259-9010 or fill out this contact form.