The answer to this question is: Yes, you can sue your broker, brokerage firm, and financial advisor through the FINRA arbitration process to recover your damages associated with negligence or unsuitable investments.
Has your financial advisor made an investment recommendation to you that was not suitable or appropriate for your investment objectives, risk tolerance, age, or net worth? Perhaps you instructed your broker to purchase a certain investment product for you and they failed to do so. Or, maybe you requested that your representative sell a certain portion of your portfolio and they failed to sell as requested. Maybe your broker’s research into a particular stock or company was inadequate or simply never done at all. Other situations involving broker negligence can be more complicated and can arise from the broker’s overall management or mismanagement of your investment portfolio, such as taking risks that you as an investor are not willing to bear, or, failing to give your portfolio the time and supervision they promised.
When situations like these arise, investors often incur substantial economic damages. These losses can often times be recovered by you the FINRA arbitration process or in some instances, suing in court. According to FINRA Rule 2111, your stockbroker or advisor has the obligation to recommend investments to you that are in accordance with your “age, other investments, financial situation and needs, tax status, investment objectives, investment experience, investment time horizon, liquidity needs, risk tolerance, and any other information the customer may disclose to the member or associated person in connection with such recommendation”. If your stockbroker or financial advisor fails to abide by Rule 2111, he or she may have made an unsuitable investment recommendation. When stockbrokers, brokerage firms, and financial advisors are negligent or recommend unsuitable products to investors, they can be liable for the damages they cause.
Our attorneys have handled securities disputes in state and federal courts throughout the country, but we primarily represent investors in FINRA arbitration proceedings. Our firm has represented over 1,000 investors who lost money because of wrongful conduct by their brokers, financial advisors, or brokerage firms.
All of our cases are taken on a contingency fee basis, meaning that we do not get paid unless we recover money for you. Our attorneys represent investors in securities litigation in all 50 states.
Have You Lost Money Due to Your Broker or Brokerage Firm’s Negligence? CONTACT ISRAELS & NEUMAN at (720) 599-3505 for a Free Case Review