June 15, 2024

When Can I Sue for Investment Losses?

Investors lose money on the stock market all the time, and every single transaction comes with a risk. But that risk should never stem from your stockbroker’s negligence or wanton disregard for your investment goals as outlined in your portfolio.

When this happens, you may be able to secure maximum recovery of your stock market losses by heading to arbitration before the Financial Industry Regulatory Authority (FINRA). To learn more about how to prove broker misconduct and how to go about getting back your stock losses, read on.

Proving Stockbroker Fraud

Fraudulent stockbrokers engage in misconduct in order to further their own financial goals, and when their risks work out in their investor’s favor, they can continue to act negligently—until the investor takes a huge stock market loss.

The silver lining when you’ve been ripped off by your stockbroker is that the vast majority of schemes leave a promising paper trail that is hard to refute in arbitration. Whether your broker was making unsuitable recommendations, selling away, making unauthorized trades, or churning your accounts, there will more than likely be significant evidence that we can use against them.

Seeking Repayment for Your Stock Market Loss

Although you can pursue litigation against a fraudulent stockbroker, oftentimes, heading to arbitration is a better option. It is less costly and your case is more likely to be resolved in a timely manner as opposed to going to court. In arbitration, a three-member panel of FINRA arbitrators will hear the evidence we’ve gathered to support your investment loss case.

After listening to the defense’s explanation for their actions, the arbitrators will retire to deliberate. Upon review of the evidence, they’ll return a decision that either awards you the indemnity you deserve or finds that the stockbroker has not engaged in malpractice, and the case will be closed.

Get Help from a Regarded Investment Loss Attorney

For assistance with your investment loss arbitration hearing, get in touch with an experienced investment loss attorney at Meissner Associates before the statute of limitations runs out. You can give our office a call at 212-764-3100 or submit the online contact form we’ve provided at the bottom of this page to schedule your no-obligation consultation today.