Stockbroker Negligence and Misconduct

There is a mistaken belief among many, including some attorneys, that investors must demonstrate fraud in order to initiate a securities arbitration action against a stockbroker. This simply is not the case. This mistake may come from the requirements placed on class action securities law suits, which must allege that some fraud has taken place.

We all owe a duty to others not to drive recklessly, light a fire too close to a neighbor’s house or otherwise act in a negligent manner. This duty also applies to financial firms, stockbrokers and other advisors who can similarly be held liable for their negligent actions or omissions.

Many investors fail to file claims against financial advisors, stockbrokers or firms because they do not want to accuse that person or firm of fraud out of fear that it would somehow tarnish the broker or firm’s reputation. However, few of us would not seek recovery for our losses if a driver negligently damaged our automobile. Why should we draw a distinction?

We should all be responsible for our negligent actions or omissions. If negligence by a stockbroker or firm resulted in loses to an investor, then the stockbroker or firm should be responsible to the investor for those losses. Not all losses are caused by negligence, but it may be prudent to seek legal consultation to determine if your losses were the result of negligence.

Contact us to help you evaluate whether you can seek recovery for “negligence”.

Client Reviews
My family and I hired Jon and his partner, Marc Fitapelli, in early 2012 mainly to try to collect from negligent auditors who allowed a fraudulent hedge fund to dupe its investors. The last thing we wanted was to throw good money after bad, so I looked for competent attorneys who would take the case on contingency. The case settled about 18 months later. Marc & Jon did what they said they were going to do: They became familiar with the facts (and there was a lot of paperwork); they brought all relevant causes of action against all possible parties; they successfully opposed defendants' various motions to dismiss; and they hung tough in mediation in order to get a reasonable settlement. And all along the way they acted professionally and kept me informed. Bruce