Investor Actions

An investor may take legal action against a broker for any of the following violations:

• Unsuitability
  If a broker fails to adequately assess an investor's individual circumstances and goals and recommends an unsuitable investment, the broker may be liable for the investor's losses. For instance, unsuitable investments for conservative investors include start-ups, buying on margin, over-concentration in technology or telecommunication stocks, and investing in junk bonds.
• Overconcentration
  Overconcentration occurs when a broker invests heavily in a single investment or type of investment, creating an unacceptable degree of risk in the customer's portfolio.
• Churning (Excessive Trading)
  A churning violation occurs when a broker engages in an excessive number or frequency of transactions without the customer's permission in order to generate commissions.
• Unauthorized Trading
  Buying or selling securities in a customer's account without the customer's consent is considered unauthorized trading.
• Misrepresentation and Omissions
  A violation may occur if a broker misrepresents or fails to disclose the risks of investing in a particular security, the charges or fees involved, company financial information, or technical/analytical information such as bond ratings.
• Failure to Execute an Order
  If a broker fails to execute a customer's order at the best possible price for the prevailing market conditions, he or she may be liable.
• Insider Trading
  Basing stock trade decisions on inside knowledge concerning a company's dealings is considered insider trading. This can be prosecuted as a crime.
• Negligence
  If a broker fails to use reasonable care in handling the affairs of the customer, does not act as a reasonable and prudent broker or advisor would act, or issues incorrect or deceptive advice to clients, he or she may be liable for negligence.
• Securities and Exchange Commission (SEC) Violations
  An SEC violation occurs when a broker is uses any manipulative, deceptive, or other fraudulent device or contrivance to effect any transaction in, or induce the purchase or sale of, any security. Brokers may be civilly liable for violations.

Other Possible Securities Claims

Investors may have legal claims against brokers who do any of the following:

• Charging excessive markups, markdowns, or commissions on the purchase or sale of securities
• Guaranteeing customers that they will not lose money on a particular securities transaction, making specific price predictions, or agreeing to share any losses in the customer's account
• Trading for a firm's account over a customer's by trading ahead of a customer limit order, absent a valid exception

If you have experienced investment losses due to any of these violations, Marshall Law PC can represent you in a lawsuit. Call our office at (619) 298-5778 to discuss your legal options.