Investment Fraud Lawsuit / Bad Advice Lawsuit

Investment Fraud Lawsuit / Bad Advice Lawsuit Related Information:

If you have been robbed or duped out of any money, by fraudsters, through investment fraud; or if you have lost money in investments, stock, securities etc because of the bad advice of your stock broker or financial advisor, you may have a valid and legal claim to file an Investment Fraud / Bad Advice Lawsuit against the fraudsters or your broker, as the case may be.

Determining A Valid Claim

In order to file a bad advice/ investment fraud lawsuit, you first need to ascertain whether or not you have a valid claim against your investment broker or any other person responsible for your losses. It is necessary to determine that your investment losses were indeed due to wrongdoing on the part of the broker/ seller/ dealer/ advisor etc, and not just as a result of the nature of the securities or investment markets. The following kinds of actions can be termed as misconduct/ bad advice/ illegal behavior and can form the basis of a bad advice/ investment fraud lawsuit.

  • Increased trading in a customer’s account, for the sole purpose of generating increased brokerage commission and fees.
  • Falsification of information regarding investments, or omissions of important facts about particular stocks, in order to entice the customer into investing in certain instruments, which will benefit the seller/dealer, but not necessarily the client.
  • Unauthorized transactions on a customer’s portfolio.
  • Failure to follow instructions and buy/sell investments as instructed.
  • Investing in unsuitable securities and stock, for personal gain, without any regard to customer’s interests.

If you have been a victim of any of the above, and have suffered investment losses as a result, then you have a valid claim and can file an investment fraud lawsuit against the responsible parties.

Types of Investment Fraud / Bad Advice Lawsuits

If arbitration is not an option for recovery of your investment losses, you can look to the following lawsuit options:

  • Independent Investment Fraud Lawsuits: If you have suffered investment losses and want to turn to the court for justice, you can file an individual lawsuit against the responsible parties, where an investment fraud lawyer can work on your behalf. Such lawsuits give you the advantages of a jury trial, complete discovery of misconduct, and the lawsuit will be decided according to the law (which is not always the case in arbitrations).
  • Class Action Investment Fraud Lawsuits: A class action lawsuit can also be an option in case of investment fraud. If you are filing a claim against brokers or other parties who are regularly involved in defrauding people, or who have caused many investors to lose money in investment fraud, then you can file a lawsuit together with all such injured plaintiffs. A class action lawsuit can help to lower your legal expenses, while at the same time get the maximum possible settlement.

An investment fraud lawsuit also gives you the added advantage of appealing any unfavorable decisions, which cannot be done in the case of arbitrations.

If you have a valid claim for an investment fraud lawsuit, you will be best advised to consult an investment fraud attorney, who can help you with your case. Going it alone is an option that many injured investors opt to take, but such a course of action can be very complex and will also not provide you with the best representation possible to win your investment fraud lawsuit and recover your losses.