Investment losses

Can I Sue My Financial Advisor for Investment Losses?

Mar 16, 2020

We are currently in a phase of massive market fluctuation. As is clear now, if it was not apparent before, the market is highly sensitive to world affairs, political changes, and global crises. The collective emotions surrounding the current worldwide Coronavirus pandemic, and the response from government and international agencies around the world, is certainly being reflected in the financial markets. That is, of course, the risk you take when investing your money in the market. However, remember that you are taking a calculated risk.   Expected Market Risk vs. Unexpected Fraud or Mismanagement by a Financial Advisor You know, as all investors know on some level, that the long-term financial returns of investing in the market typically outweigh any short-term losses. But there is always some risk involved. That is why it is good practice to invest regularly, try to have your financial advisor balance your portfolio so you can hedge some of your bets against an economic downturn, and try to manage your stress and concern during major market volatility of the kind that we are currently experiencing due to the Coronavirus.  All that being said, the kind of risk we do not account for is when your financial advisor does something that is not in your best interest, and/or when your broker or advisor puts their interests above yours. That is not the ordinary, to-be-expected, kind of investment risk. Rather, that is a wrongful act on the part of your broker or financial advisor for which you can obtain damages through a lawsuit or arbitration.   So, the short answer to the question, “Can I sue my financial advisor for investment losses?” is “Yes.” In this article, we will discuss the reasons for using your broker or financial advisor, and the mechanics of how to get your “day in court” when you are the victim of investment fraud, negligence or mismanagement.   If, after reading this article, you have additional questions on any investment fraud matters, we invite you to contact investment loss attorney Melanie Cherdack. Ms. Cherdack is an investment loss attorney who understands the plight of those who were victims of investment fraud. She has “seen it all” when it comes to the schemes that investment brokers use to defraud their clients.   To learn more about whether you need an investment loss attorney for your current situation, then we invite you to contact us today on our online contact form, or by calling 888-768-2499. We are the investment fraud lawyers who are leveling the playing field for you.     There Are a Number of Reasons That Will Support Legal Action Against Your Financial Advisor Losing money due to market fluctuation is, simply put, the risk of investing. Losing money due to wrongful conduct on behalf of your financial advisor, however, may provide grounds to take legal action against him or her. Here are some common reasons why an investor will take legal action against a financial advisor or broker. 1. Outright Fraud. Selling fake securities or products; or not using your money to buy securities at all. 2. Broker Negligence. Investing your money in a way that is not […]

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