My Stockbroker Breached Our Contract. What To Do Next?

Legal Recourse for Denver, Colorado Investors Who’ve Suffered Contract Violations

If you are an investor whose broker or brokerage firm breached your agreement, causing you financial losses, you may have grounds for filing a Financial Industry Regulatory Authority (FINRA) arbitration claim for damages.

At Shepherd Smith Edwards and Kantas (SSEK Law Firm), our Denver breach of contract attorneys represent investors throughout the city and the state in their cases against broker-dealers and their registered representatives.

Broker Misconduct and Negligence Are Breaches of Contract

As the customer of a brokerage firm, signing an agreement to officialize your financial relationship or to set up a new account gives you certain rights and holds your broker accountable to certain duties of obligation to you.

A financial representative can breach a contract in a variety of ways, such as:

Making unsuitable investment recommendations that are not in alignment with your investment goals or risk tolerance levels
Broker and brokerage firm negligence
Making misrepresentations and omissions when marketing a financial product to you
Unauthorized trading
Unsuitable trading
Making decisions involving your account when the broker has a conflict of interest
Selling away, including making trades for you involving financial products that are not approved of or offered by the firm.

All of these actions will often result not just in breach of contract but also in investors suffering losses.

Brokerage Firms and Breach of Contract

It is important to note that brokers generally make both written and oral agreements with customers, and a breach of either can be grounds for a breach of contract claim when damages are involved. Even if it is the broker and not the firm that was in breach of agreement, the broker-dealer could be held liable for the damages.

Sometimes it is the brokerage firm that is in breach. For example, a broker-dealer may have aggressively marketed a financial product to its customers without conducting the proper due diligence and this investment later proves fraudulent. Or, a firm sold risky investments because they paid high commissions and not because they were in the customer’s best interests.

Denver Stockbroker Fraud Law Firm

Our stockbroker fraud attorneys in Denver can identify how your broker/their firm violated their agreement with you and help you pursue a claim for damages and losses. Contacting us today is your next step.