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Can I Sue for Lack of Portfolio Diversification?

Every investment opportunity comes with a risk, but what happens when you suddenly suffer significant losses due to your stockbroker’s negligence? The good news is that you can take action against your financial advisor and seek maximum recovery of the losses you endured. 

Lack of portfolio diversification is one of the most common reasons an investor will endure such losses. Read on to learn more about what a lack of diversification is and how to get your money back after suffering such an investment loss.

What Is a Lack of Diversification?

Have you ever heard the phrase, “Don’t put all your eggs in one basket”? You can think of a lack of portfolio diversification as putting all your eggs in one basket. In terms of investments, this means your broker has failed to put your money into several industries or investment opportunities and instead put the majority into one or few investments or industries. 

This can be devastating for an investor when that particular investment fails and they suffer significant losses. In many cases, inexperienced or negligent financial advisors fail to diversify their client’s accounts, thereby causing them to lose money.

FINRA Arbitration for Lack of Portfolio Diversification

The Financial Industry Regulatory Authority (FINRA) oversees registered stockbrokers, financial advisors, and firms. When an investor loses money due to a lack of portfolio diversification, these parties can be ordered to repay the wronged investor. 

There is no excuse for negligence or incompetence when it comes to investor funds. You can seek full recovery for your losses for a lack of diversification, failure to supervise, and broker negligence when you lose money due to lack of diversification in your investment portfolio. You can discuss the FINRA arbitration process with your lawyer to learn more about what to expect next. 

Get in Touch with a FINRA Arbitration Lawyer

If you are ready to take legal action against your financial advisor for lack of portfolio diversification, contact a reputable FINRA arbitration lawyer at Wolper Law Firm to discuss the individual details of your case. Fill out the online submission form below or call 800-931-8452 to schedule a free consultation.

Now is the time to talk to an investment loss recovery lawyer. We can help recover your investment loss. Free consultations, always.

Main Office - Fort Lauderdale

1250 S. Pine Island Road
Suite 325
Plantation, FL 33324
Phone: (800) 931-8452
(954)-406-1231

We represent clients nationwide, including, but not limited to: Miami, Boca Raton, West Palm Beach, Sarasota, Tampa, Stuart, St. Petersburg, Vero Beach, Orlando, Jacksonville, Austin, Houston, Dallas, Washington DC, Charlotte, Boston, Baltimore, Phoenix, Scottsdale, Las Vegas, Los Angeles, San Diego, San Francisco, Chicago, Seattle, Portland, Denver, Salt Lake City, Fargo, Atlanta, Little Rock, Newark and St. Louis

Additional Office Locations (by appointment only)

Atlanta

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Suite 7
Atlanta, GA 30326

Indianapolis

13295 N. Illinois St.
Suite 314
Indianapolis, IN 46032

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New York, NY 10016

Dallas

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Suite 400
Dallas, TX 75201

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Suite 1700
Irvine, CA 92612

Portland

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Suite 205
Portland, OR 97220

Denver

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Suite 1100
Denver, CO 80237

Naperville

1700 Park Street
Suite 103
Naperville, IL 60563

Seattle

1001 Fourth Ave.
#3200
Seattle, WA 98154

We represent clients nationwide, including, but not limited to: Miami, Boca Raton, West Palm Beach, Sarasota, Tampa, Stuart, St. Petersburg, Vero Beach, Orlando, Jacksonville, Austin, Houston, Dallas, Washington DC, Charlotte, Boston, Baltimore, Phoenix, Scottsdale, Las Vegas, Los Angeles, San Diego, San Francisco, Chicago, Seattle, Portland, Denver, Salt Lake City, Fargo, Atlanta, Little Rock, Newark and St. Louis