The stock fraud lawyers at Fitapelli Kurta are experienced in taking legal action against investment brokers and advisers who have caused investors’ losses. From our office in New York, we represent clients across the United States in a wide variety of claims, including broker misrepresentation. The securities attorneys at Fitapelli Kurta can analyze the facts of your case and explore the legal solutions appropriate to your goals. We have significant experience arbitrating investor claims before the Financial Industry Regulatory Authority (FINRA), and we have recovered millions of dollars for our clients.Holding Brokers Accountable for Misrepresentations and Omissions
The Securities Exchange Act is the federal law that regulates the securities industry and protects investors from fraud and other bad acts by investment professionals. The Act is also responsible for allowing individuals to bring a private lawsuit for financial losses related to the sale or purchase of securities.
One of the main ways that the Act protects investors is by prohibiting brokers from making untrue or false statements that can mislead their clients. This also includes omitting to disclose material facts regarding an investment or the effect that an investment could have on the client’s finances. A “material fact” is a piece of information that would be a significant consideration for a reasonable investor in making a decision about an investment. Some examples include the risk level of a stock, the potential return on an investment, or the fees involved with the transaction.
In order to be successful on a claim of misrepresentation, an investor must show that an investment professional knowingly made a false representation of a material fact. It must also be proven that the broker or adviser intended that the client rely on his or her misrepresentation. Finally, an investor must show that he or she justifiably relied on the misrepresentation and suffered damages as a result of that reliance. An individual bringing this type of lawsuit must be able to show that the misrepresentation was a substantial reason for the investment decision.
There are also cases where an investor may suspect that his or her broker did not disclose important information regarding a stock or security. In those situations, he or she still has a claim if it is possible to show that the broker knowingly omitted material facts that were necessary to make the investment advice truthful. There may be a presumption of reliance in situations when an investor could reasonably expect that the broker would disclose material information. A presumption makes it easier for an individual to succeed in showing a particular requirement of a claim, even if there is little or no evidence to prove it.
Finally, it is important to note that investment professionals owe a fiduciary duty to their clients, which requires them to place their clients’ interests above their own financial interests. Therefore, advisers have a duty to disclose material information to investors regarding any and all conflicts of interest.Discuss Your Investment Fraud Case With an Investment and Stock Fraud Lawyer
Because of the complex nature of the investment industry, it is vital to hire legal counsel who can recognize the pivotal nuances in misrepresentation cases. If you have suffered financial losses and have reason to believe your adviser or broker has given you misleading advice, you may be entitled to legal recourse. The investment fraud attorneys at Fitapelli Kurta have helped many clients throughout the nation determine if they have fallen victim to misrepresentations or omissions. Call (877) 238-4175 or contact us online to speak with one of our staff today.