While many people believe that they have been the victim of a securities fraud, the lawyer’s challenge is proving that claim to an arbitration panel by establishing the necessary elements of a recognized cause of action. One cause of action used in many securities fraud cases is a claim for fraud/misrepresentation (i.e. the financial advisor misrepresented the investment, its riskiness or basic terms, and the investor lost money as a result).
To establish a securities claim in Florida for misrepresentation, a Plaintiff/Claimant must prove the following: (1) “[a] misrepresentation of a material fact; (2) [t]he representor of the misrepresentation knew or should have known of the statement’s falsity; (3) [i]ntent by the representor that the representation will induce another to rely and act upon it; and (4) [r]esulting injury to the party acting in justifiable reliance on the representation.” Lou Bachrodt Chevrolet v. Savage, 570 So.2d 306, 308 (Fla. 4th Dist. Ct. App. 1990).
Accordingly, in proving a typical securities fraud claim for misrepresentation the attorney would need to prove that the financial advisor or broker dealer (1) misrepresented a material fact of the investment sold, (2) the financial advisor knew or should have known that the material fact regarding the investment was not true, (3) the financial advisor intended the investor to rely on the financial advisor in deciding whether to purchase the investment, and (4) the reliance resulted in an injury to the investment (i.e. the investment lost money).
If you believe that you have a claim for misrepresentation, or another kind of securities fraud claim like unsuitability, negligence, churning, selling away, or failure to sell, The White Law Group may be able to help. To speak to a securities attorney, please call our Chicago Office at 312-238-9650 for a free consultation.
The White Law Group, LLC is a national securities fraud, securities arbitration, investors protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.
To learn more about The White Law Group, visit http://www.whitesecuritieslaw.com.