Stock Fraud Class Action Lawsuit Lawyers
The stock fraud lawyers and attorneys at our firm are currently evaluating
potential stock fraud class action lawsuits. View
firms being investigated. We are committed to helping people who,
due to the manipulation of brokers, fund managers and others, have purchased
or sold stocks when it was not in their interest to do so . stock fraud
costs investors billions of dollars each year, and unfortunately, most
people will not know they have been the victims of stock fraud until their
losses become significant. Brokers, fund managers and other financial
advisors have a duty to inform their clients of all of the risks involved
in stock transactions. When they fail in this duty, our stock fraud lawyers
will hold them accountable, and make sure that defrauded investors recoup
their losses through the filing of stock fraud class action lawsuits when
necessary.
View firms being investigated.
As more and more Americans have invested in the stock market, the incidence of stock fraud has become more commonplace. Many people depend on brokers and other individuals to guide their stock trades, but often these trusted sources are more interested in lining their own pockets than with the financial well-being of their clients. At the same time, the rise of the internet have given those who commit stock fraud greater access to their intended victims. It is estimated that stock fraud costs investors approximately $40 billion per year. Our stock fraud class action lawsuit lawyers have seen how fraudulent stocks schemes perpetrated in the securities and commodities markets can ultimately have a devastating impact on the financial well being of individual investors.
Types of Stock Fraud
There are several ways that an investor can become a of victim stock fraud. Sometimes, the stock fraud is the result of an individual, such as a broker, seeking to increase his or her commission. But sometimes, stock fraud can be the act of an entire firm that is looking to manipulate stock prices by pushing all of the firm's clients to purchase a certain stock in order to inflate its value. Corporations have also been known to release false financial statements in order to inflate the value of the company's stock. Our stock fraud lawyers have assisted clients in several class action lawsuits involving many types of stock fraud, and we have had success helping defrauded investors recoup their losses.
There are several categories of stock fraud. Often, stock fraud is committed by an individual broker. These types of stock fraud include misrepresentation/omission fraud, unsuitability fraud, overconcentration fraud and illegal stock churning. The stock fraud class action lawsuit lawyers at our firm have experience with all of these of forms of stock fraud, and we are committed to making sure that brokers who commit these acts are held to account.
Misrepresentation/ommission is a type of stock fraud that occurs when the broker intentionally misleads the customer about material facts regarding the stock. Brokers have a duty to inform investors about all known risks associated with a stock. But there are many cases of stock fraud involving misrepresentation or omission that disguise risks associated with that particular stock.
A broker should be aware of a client's risk tolerance. stock frauds involving unsuitability occur when the broker knowingly recommends stocks that are outside the client’s risk tolerance. stock frauds committed through unsuitable matches allow the broker to push undesirable stocks. There are many cases where this type stock fraud results in losses much higher than the client can bear. Unsuitability stock fraud can be especially devastating for older people, as bad matches can wipe out large portions of retirement savings just when they need those funds the most.
Purposely failing to diversify a client’s portfolio can be a form of stock fraud known as overconcentration. In order to protect a client’s assets, the broker should vary the types of stock purchased, stock fraud through overconcentration strips the client of the protection diversification can afford. Our stock fraud lawyers are committed to helping people recoup losses from this type of stock fraud.
Churning is another serious form of stock fraud that is used to boost a broker's fees. Churning involves trading large numbers of stocks, even when it is not in clients' best interests. Often this form of stock fraud consists of selling stocks with small gains in order to show a profit. When a broker churns stock, he or she is simply trading in order to obtain fees from each transaction, and gives no thought to how the trades effect clients' well being. Though stock churning is often committed by an individual broker, often an entire firm is liable for that brokers actions. A firm should have safeguards in place to prevent and detect illegal stock churning.
Our stock fraud lawyers are also evaluating potential stock fraud class action lawsuits involving schemes that are far more elaborate than the ones mentioned above. Sometimes, stock fraud can involve an entire company, with many employees engaged in illegal acts at the direction or encouragement of higher-ups. In some cases, corporations have engaged in stock to keep failing businesses funded. Many other stock fraud investigations in recent years have found an enormous amount of insider trading, which occurs when brokerages sell IPO stocks before the release date to favored clients and friends. Elaborate forms of stock fraud like this can destroy the finances of investors, and even whole companies.
View firms being investigated.
Legal Help for Victims of Stock Fraud
The buying and selling of stock is highly regulated, and brokers, fund managers and other financial advisors must follow strict rules in their dealings with clients. Federal and state laws provide a legal remedy for defrauded investors to recover their losses. Investors may also be entitled to compensation for the loss of income that their investments should have been generating, interest on the losses and legal fees. The stock fraud class action lawsuit attorneys at our firm are familiar with the laws and regulations governing stock transactions, as well as the remedies available to the victims of stock fraud. We will work diligently to make sure the victims of stock fraud have access to all of the legal and financial remedies they are entitled to.
If you believe you have been the victim of stock fraud, it is important to contact a qualified stock fraud lawyer as soon as possible. There are definite time limitations within which investors must file claims for stock fraud. If you are a victim of stock fraud, please fill out our online form or contact us at 1-800-LAW-INFO (1-800-529-4636) so that our stock fraud lawyers can take the necessary action to protect your rights.