Overconcentration Loss Attorneys

How Can I Recover My Investment Losses Caused By Overconcentration?

Morgan Stanley Ordered To Pay Senior Investor $1.8M 

If your financial advisor placed too much of your funds in one particular stock or kind of investment, you may be able to pursue damages from the broker-dealer. The best way to do this is to work with seasoned overconcentration lawyers who can file your investment loss recovery lawsuit for you.

In August 2023, a Financial Industry Regulatory Authority (FINRA) arbitration panel ordered Morgan Stanley to pay an older investor $1.8M after finding that broker Todd Wachsman purportedly placed too much of the claimant’s portfolio in WisdomTree Investments from 2011 to 2020. Her arbitration claim alleged breach of contract, fraud, unsuitability, unjust enrichment, failure to supervise, and other causes of action.

Although this senior investor had sought $1.6M in damages, the FINRA arbitrators told the firm to pay her $1.8M. The reason for this was that they felt that she had suffered opportunity costs while the money was invested in the stock.

Why You Want To Work With Knowledgeable Overconcentration Loss Attorneys

Overconcentration happens when a broker fails to properly diversify a customer’s account and ends up concentrating their portfolio in too much of an investment, whether a single security, stock, company, asset class, or market segment. This can be risky for the investor, who ends up not having the possibility of loss buffered by an account that is better diversified with different kinds of investment products.

Concentration can happen because of unsuitable investment recommendations by a broker, negligence via poor portfolio mismanagement, or a breach of fiduciary duty to ensure a customer’s account is properly structured so as to benefit the investor and protect their money. Correlated investments, in which a portfolio appears to be diversified when, in fact, the financial advisor merely placed an investor in investments that can be similarly impacted by the same market forces, is another form of overconcentration.

Concentration is one of the most common types of broker negligence. Yet this happens often under the watch of brokerage firms all over the United States. It is important that these firms be held liable for their failure to properly supervise their registered representatives. It is even more essential that the investors who are harmed recoup the damages they are owed.

Why Hire Our Savvy Concentration Loss Law Firm? 

At Shepherd Smith Edwards and Kantas (investorlawyers.com), many of us are former financial advisors who left that industry because of the unsavory practices we witnessed. We now harness our knowledge as former insiders to fight for investors who have been the victim of concentration, unsuitability, misrepresentations and omissions, and much more.

With over a century’s worth of experience in securities law and the securities industry, our team has the skills and resources to help each client determine the cause of their investor losses and pursue their financial recovery in arbitration, mediation, or litigation.

More than 90% of our clients have received full or partial financial recovery.

How To Contact Us:

 

Your best chance at obtaining financial recovery is to work with trusted overconcentration loss attorneys who know how to fight for you.

To schedule your free, no-obligation case consultation, call (800) 259-9010 today.