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Can I Sue My Stockbroker?

When the goals you’ve set for yourself as an investor haven’t gone your way or you’ve noticed substantial losses since you started working with your stockbroker, you may be wondering what legal options are available to you. Losing money on the stock market or through investing is not uncommon, but your stockbroker should never be the cause of it.

Below, we go into further detail about when you might need to sue for broker misconduct and how you can go about holding your negligent stockbroker accountable for their actions.

Instances of Stockbroker Negligence or Misconduct

Not every investor can sue their broker or initiate a complaint against them via the Financial Industry Regulatory Authority (FINRA). In order to do so, your registered stockbroker must have breached their fiduciary duty to always prioritize your best interests and investment goals as outlined in your investment portfolio.

When your broker engages in any of the following types of misconduct or negligence, and you lose money, you can seek recovery of these losses through a FINRA arbitration claim:

  • Selling away
  • Misrepresentation
  • Unauthorized trading
  • Omission
  • Churning
  • Unsuitable investments
  • Failure to supervise
  • Lack of diversification
  • Trading on a margin

How to Sue a Stockbroker

Typically, rather than suing your stockbroker, you’ll file a FINRA arbitration complaint against them. This is often the best option for wronged investors who want to spend as little money as possible and be repaid for their losses and other damages.

In arbitration, you will present your evidence to the arbitrators and have witnesses testify. Your stockbroker will also have the opportunity to present evidence and defend themselves. Once both parties have been heard, the arbitrators will review the details of the case and determine whether your broker should be ordered to compensate you for your investment losses.

Reach Out to a Stock Loss Attorney

If you are considering a lawsuit against your stockbroker, you may want to consider filing a FINRA arbitration claim instead. A reputable stock loss lawyer at Wolper Law Firm will tell you what’s best for you and could help you get the most out of your lawsuit or claim so you can ideally recover your losses and move forward with your life.

To schedule your free, confidential consultation, simply complete the secure contact form at the bottom of this page or give our office a call at 800.931.8452.

Attorney Matthew Wolper

Attorney Matthew WolperMatt 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. [Attorney Bio]