Can an Attorney Help You Recover Stock Market Losses?

When you first hire a stockbroker, you are trusting that person to make sound investments on your behalf. Your broker is a trained finance professional and is expected to have detailed knowledge of stock market workings.

Unfortunately, even the most experienced and qualified brokers can make mistakes and stock market losses happen, even to the most experienced investors.

Large losses in the stock market can be devasting, not just to your financial health, but also to your emotional well-being.

If you have recently suffered stock market losses, you may be wondering if you have any legal recourse.

We Help Investors Recover Stock Market Losses

The securities attorneys at the Law Offices of Robert Wayne Pearce, P.A. have been helping investors recover stock market losses for over 40 years.

We are one of the most experienced FINRA arbitration law firms in the country and have recovered more than $175 million on behalf of our clients.

We understand the complex legal and financial issues involved in stock market loss cases and will tenaciously fight for your rights.

We represent clients on a contingency fee basis, which means you won’t owe us anything unless we are successful in recovering your losses.

If you have suffered stock market losses, we can help. To learn more about how we can help you recover your losses, contact us today at (800) 732-2889 or fill out one of our short contact forms.

Common Tactics Stockbrokers Use to Deflect Blame for Losses

Losses in the stock market are usually not discovered by the investor until there are already substantial losses. By the time the investor realizes there are losses, the damage has already been done.

However, brokers are quick to deflect blame and will often try to convince investors that the losses were due to factors outside of their control, such as the overall market conditions.

The chances are that if you’ve lost thousands, tens of thousands, or even hundreds of thousands of dollars in the stock market, your stockbroker has been putting your investments at risk for a while.

Many times, investors don’t realize the risk their broker has been taking until it’s too late and they’ve suffered significant losses.

Don’t be fooled – in many cases, stockbrokers are to blame for losses due to:

• Unauthorized trading on a non-discretionary account
• Unsuitable recommendations
• Breach of Fiduciary Duties
• Forced liquidation (forced selling)
• Churning or excessive trading
• Failure to supervise
• Lack of diversification
• Misrepresentation
• Misappropriation of client funds

There are a wide variety of claims that investors can bring against their brokers when they have suffered losses.

The type of claim will depend on the facts and circumstances of each individual case.

Not every scenario is the same, therefore it’s critical to consult with an experienced securities lawyer about the specifics of your case to determine if you have a claim and what your next steps should be.

Does Your Stockbroker Have a Previous History of Misconduct?

Customer complaints are public records and can be found on FINRA’s BrokerCheck website.

BrokerCheck is a free tool that allows investors to research the professional background of current and former FINRA-registered brokers.

To use this tool you will need:

• The name of your broker or their CRD number
• The name of the brokerage firm or financial institute (optional)
• The city, state, or zip code that the broker resides or worked in (optional)

By searching BrokerCheck, you can find out if your broker has a history of misconduct.

Some types of misconduct that may be revealed include:

• Customer complaints
• Disclosure events
• Employment Termination
• Arbitration awards
• Bankruptcy filings
• Criminal charges or convictions

If you discover that your broker has a history of misconduct, this may be evidence of a pattern of behavior that led to your losses. This information will be found in the section labeled “Disclosure(s)”.

You may be able to use this information as part of your claim against the broker or their firm.

Has Your Stockbroker Engaged in Misconduct Resulting in Investment Losses?

Nearly all investment account agreements used by brokerage firms and other financial institutions contain a clause requiring customers to arbitrate any disputes through FINRA.

FINRA is the Financial Industry Regulatory Authority, which is the self-regulatory organization that oversees broker-dealers and the securities industry.

FINRA recommends that investors attempt to informally resolve their disputes with a broker or brokerage firm before filing a formal complaint, but if an informal resolution is not possible or is not successful, the investor’s only recourse may be to file a FINRA arbitration claim.

The arbitration clause in your account agreement means that if you have suffered investment losses and want to take legal action against your broker, you will be required to do so through FINRA’s arbitration process.

While the arbitration process can be complex and time-consuming, it is often the only avenue available to investors who have lost money due to their broker’s misconduct.

The securities attorneys at the Law Offices of Robert Wayne Pearce, P.A. have decades of experience representing investors in FINRA arbitration claims.

We understand the process and will tenaciously fight for your rights.

If you have suffered investment losses, we can help. To learn more about how we can help you recover your losses, contact us today at (800) 732-2889 or fill out one of our short contact forms.

What Is FINRA Arbitration?

FINRA arbitration is a process through which investors can resolve disputes with their brokers without going to court.

FINRA is the Financial Industry Regulatory Authority, which is the organization that oversees and regulates the securities industry.

All broker-dealers that are members of FINRA must agree to arbitrate disputes with their clients through the FINRA arbitration process.

If you have an investment account with a broker-dealer that is a member of FINRA, you likely signed an agreement when you opened your account stating that you would arbitrate any future disputes through FINRA.

The arbitration process is similar to going to court, but there are some important differences.

For example, in arbitration, there is no jury and the arbitrators (the people who hear the case) are usually experts in the securities industry.

The arbitration process is also generally faster and less expensive than going to court.

You can learn more about the FINRA arbitration process here.