Have you recently discovered significant stock losses?
Are you out thousands of dollars or more due to your stockbroker’s negligence? If so, a qualified investment loss attorney may be able to help you recover the compensation you may be entitled to. As an investor, you should be able to count on your stockbroker, brokerage firm, or financial planning institution to prioritize your needs and best interests above their own. Unfortunately, this industry isn’t always known for being the most honest, and when you’ve been taken advantage of, you have the right to seek full repayment of your losses through the pursuit of an arbitration claim. Going up against a large corporation or savvy stockbroker can be intimidating, but when you have Wolper Law Firm, P.A. on your side, you’ll be able to breathe a sigh of relief knowing a highly trained investment loss lawyer at our firm is fighting for the money that is rightfully yours.Key Takeaways
- Investment losses can sometimes stem from broker misconduct or poor decision-making practices such as unsuitable recommendations, excessive trading, or failure to properly manage client risk.
- Brokers and firms are required to follow suitability and fair dealing standards, meaning investment strategies must align with a client’s financial profile, objectives, and risk tolerance rather than the broker’s compensation.
- Investors who suffer losses due to misconduct or negligence may pursue recovery through FINRA arbitration based on claims such as breach of duty, failure to supervise, or fraud.
The Duty of Fair Dealing as It Relates to Investment Losses
Essentially, the duty of fair dealing means that your stockbroker is legally obligated to always make decisions regarding your investments that are in your best interests. Generally, this means that they will make investments and investment suggestions based on the goals and objectives you have set for yourself in your investment portfolio. A breach of this duty of fair dealing, usually for a broker or brokerage firm’s own financial gain, is the key to obtaining repayment of your investment losses in arbitration through the Financial Industry Regulatory Authority (FINRA).When to Sue for Investment Losses
There are seemingly countless reasons you might sue your stockbroker for your investment losses, but your claim can only be a success if there was a breach of fiduciary duty (the duty of fair dealing). However, it is important to note that only registered stockbrokers are subject to fiduciary duty, so be very cautious when dealing with an unregistered broker. There are several different ways a broker or financial planning institution can engage in fraudulent misconduct, some of which include:- Churning (also known as excessive trading)
- Unauthorized trading
- Making unsuitable investments and investment suggestions
- Negligence
- Failure to supervise
- Unregistered trading
- Elder Abuse
- Selling away
- Failure to diversify
CLIENT REVIEW
“Hiring Mr. Wolper was the best decision we ever made! He is professional, responsive, and most importantly kind to his clients. He helped us get resolution to a case that we had been struggling with for a long time. He kept us in the loop about all the details and was patient in helping us understand the information that was coming out way. I would recommend him without any hesitation.” – Giovanna M.
Investment Loss FAQ
The world of securities and financial markets can be quite complex for investors, making it easier for some stockbrokers to engage in misconduct that could result in substantial stock market and investment losses. Understanding the arbitration process and types of investment losses can be a challenge, and you more than likely have many questions regarding what’s to come. With this in mind, below we have compiled some of the most commonly asked questions regarding investment loss and FINRA arbitration so you can better prepare for your next steps in the complaint process. If you have another question that is not answered on this page, please reach out to our office directly so we can further discuss the details of your investment loss case.
If you are considering a FINRA arbitration claim, you will have a maximum of six years after the date on which the loss occurred in order to be granted a hearing, if your losses warrant one. This six-year statute of limitations may be extended to start from the date that you learned of the investment loss if you only discovered your broker’s negligence at a later date, as is the case in some instances.
Failure to file a claim before this deadline expires will mean losing the opportunity to both recover the investment losses you endured and bring the reckless financial planner or broker to justice.
Yes, you can. Though FINRA arbitration is usually the best option for financial recovery following an investment loss, you also have the right to attempt to resolve this matter through mediation.
Both parties must agree to mediation for this to be an option, but if this is the case, a FINRA-appointed mediator will take statements from both parties and then work with you both to see if, ultimately, a settlement can be reached. The good news is that as many as 80 percent of mediation cases will result in a settlement.
However, your attorney may advise that a FINRA arbitration hearing is a better fit for you, depending on the circumstances of your case.
Due to the fact that every investment loss is different, it is difficult to say how much you could be awarded without reviewing the details of your case.
The amount of your investment losses, how impactful the loss was on your life, and the actions of stockbrokers, financial planners, and brokerage firms can all play a part in how much the FINRA arbitrators could reward you if your complaint is successful.
Once your FINRA lawyer has the opportunity to review your case, you’ll have a better idea of how much you’ll be seeking in your FINRA arbitration claim.
How FINRA Arbitration Works for Investment Losses
If you have made the decision to move forward with a FINRA arbitration claim, chances are you want to know what you can expect from the entire process. FIrst, you need to file your complaint, known as a statement of claim. This will include information regarding your investment losses, the various ways your broker’s misconduct caused the loss, and other pertinent details surrounding the dispute. From there, after FINRA has had a chance to review the claim, you’ll be given a case number and a hearing date. Depending on how much money you lost and a number of other factors, you could have your case heard by one arbitrator or as many as three arbitrators who can impartially review the case. During your hearing, you will have the opportunity to present your case and have both fact witnesses and expert witnesses testify on your behalf, as will the respondent. Once both parties have presented their case, the arbitrators will retire to deliberate and make a decision. The entire FINRA arbitration process is typically much quicker than having to go to court, but it can still take as long as 18 months to conclude. Once a decision has been made by the arbitrators, neither you nor the other party can contest or appeal the decision, as it is final and binding.Contact an Investment Loss Attorney
If you have endured considerable losses on the stock market or through other investments and you aren’t sure where to turn to for help, reach out to an experienced investment loss lawyer at Wolper Law Firm, P.A. for assistance in filing a FINRA arbitration claim. We can be reached by phone at 800.931.8452 or through the secure contact form we have included below when you are ready to come in for a confidential consultation.Attorney Matthew Wolper
Matt Wolper is a trial lawyer who focuses exclusively on securities litigation and arbitration. Mr. Wolper has handled hundreds of securities matters nationwide before the Financial Industry Regulatory Authority (FINRA), American Arbitration Association (“AAA”), JAMS, and in state and federal court. Mr. Wolper has handled and tried cases involving complex financial products and strategies ranging from traditional stocks and bonds to options, margin and other securities-based lending products, closed/open-end mutual funds, structured products, hedge funds, and penny stocks.
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