October 14, 2013 Comments (0) Blog, Securities Fraud

Considering a Stockbroker Malpractice Lawsuit?

(Last Updated On: July 17, 2015)

Have you suffered unnecessary financial losses as a result of stockbroker malpractice? If so, the White Law Group may be able to help you recover your investment losses by filing a FINRA arbitration claim.

The term malpractice is not generally used to describe disputes that arise between investors and stockbrokers.  However, broker misconduct and wrongdoing can certainly be thought of as malpractice.

Stockbrokers and financial advisors have a fiduciary duty to make investment recommendations that are in your best interest. Not only is it the responsibility of your broker to perform adequate due diligence to determine whether an investment has a reasonable likelihood of success, they most also review your individual profile to determine appropriate recommendations.  For example, brokers must take into account your age, income, net worth, risk tolerance, financial objectives, and investment experience, among numerous other considerations prior to selling investments.

Unfortunately, some stockbrokers are more interested in the commissions they earn selling investments than your financial objectives. At the end of the day, brokers are salesmen, and they’re objectives may not always be in-line with yours.

Unscrupulous brokers may mislead or even lie to you regarding the risks of a particular investment. In some cases, brokers portrayed investments as “safe” or make guarantees, and may even omitted pertinent information. In addition to misrepresentation, broker misconduct can include negligence, breach of contract, and unsuitability to name a few types of securities fraud.

Arbitration is an alternative to traditional court that is legally binding and all awards are final. The majority of stockbrokers in the US require potential new clients to sign a contract in which they agree to settle any disputes that may arise through arbitration. In general, arbitration is less expensive and faster than a traditional lawsuit. The Financial Industry Regulatory Authority provides the largest forum in the US to resolve investor disputes against their stockbroker.

The attorneys of The White Law Group focus exclusively on the representation of investors against their stockbroker in FINRA arbitration. If you believe that your investment losses are the result of the misconduct of your stockbroker, please call the attorneys of The White Law Group at (312)238-9650 for a free consultation.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Boca Raton, Florida.

For more information on The White Law Group, visit www.WhiteSecuritiesLaw.com.

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