While the Securities and Exchange Commission (SEC) maintains strict regulations regarding acceptable investment practices, investors lose millions of dollars every year to broker negligence and corporate fraud. According to the Harvard Law School Forum on Corporate Governance, core filings, which refer to securities fraud lawsuits that exclude mergers and acquisitions, reached record highs for both United States and international exchanges in 2019.
Not only do dishonest issuers cause personal financial loss, but their combined actions can negatively impact stock prices and lead to economic crises. Through class action and individual cases, attorneys can hold them responsible and help investors recover their lost funds.
If you entrusted your financial resources to a business or brokerage firm that committed fraudulent acts resulting in the loss of your investment, Ben Crump Law, PLLC can help. Contact us today at 800-932-1441 to talk to our legal team about your securities litigation case.
Your Legal Protections Against Securities Fraud
Securities litigation cases vary by the type of investment involved, the amount of loss, and victims affected. Securities fraud occurs on an individual basis when a person hires a broker or brokerage firm to invest their personal funds on their behalf, and the broker loses the investment due to illegal practices. Cases may also occur on a larger scale, such as when corporate executives make unethical decisions that lead to the financial loss of their shareholders.
If several victims plan to file claims against one specific party, a class-action lawsuit, in which a legal team represents an entire group in court, may benefit all involved. Otherwise, an individual case may help the investor achieve results. A Los Angeles security litigation lawyer can help you determine the appropriate type of case for your needs and develop a strategy for recovering your funds.
Types of Securities Fraud
Both federal and California laws regulate the sale and trading of stock and govern the regulations regarding acceptable investment practices. The SEC maintains requirements applicable to all states, while each state has its own Blue Sky Laws. According to Mabie Law Library at Santa Clara University, these laws got their name in the early 20th century, when only ‘blue skies’ protected consumer investments. In 2007, non-governmental security measures arose when the Financial Industry Regulatory Authority (FINRA) began as an independent, self-regulating organization designed to protect investors against unlawful practices.
Despite these levels of oversight, securities fraud continues to increase, and investors may lose their financial resources to many types of negligence and fraud, as noted by the Maryland Law Review.
Misrepresentation and Omission
These types of securities fraud often occur together due to their similarity. While misrepresentation refers to the blatant lying or misconstruing of details regarding investments or a company’s financial health, such as presenting a false annual report, omission involves keeping important information from investors about these issues. Misrepresentation and omission account for most cases of securities fraud, and the attorneys at Ben Crump Law, PLLC can help you pursue accountability in court. Contact us online today, and our legal team will call you to discuss your free case evaluation.
Excessive Trading
Also called churning, excessive trading involves the overtrading of stocks with the goal of increasing profit for the issuer, not the investor. The scheme works by making the investor unknowingly pay more for broker commissions, thus costing the investor money while lining the pockets of the broker.
Unsuitable Investing
Brokers, brokerage firms, and corporations hold the responsibility of exercising carefully strategized investment practices that benefit the specific intentions of their clients and shareholders. Sometimes, however, they purposely fail to use such caution, resulting in financial loss.
Insider Trading
Insider trading is using non-public information about a stock for any purpose. While the SEC considers certain aspects of insider trading legal, illegal forms, such as using classified information to benefit company executives, can lead to investor loss. A Los Angeles security litigation lawyer can help you prove the unlawful nature of the insider trading involved in your case and seek the recovery of your funds.
For a free legal consultation with a security litigation lawyer serving Los Angeles, call 800-709-1441
How an Attorney Can Help You with Your Securities Fraud Case
Securities litigation in California involves an intricate and often lengthy process that varies based on specific circumstances. Because of the complicated nature of these cases, investors often find that they can be difficult to navigate without the legal assistance of an attorney. Securities litigation law firms can help you build your case by:
- Studying the details of your case to develop a strategy
- Deciding on a suitable approach for your circumstances
- Negotiating with the defendant
- Reaching a settlement or returning to court to pursue just compensation
A Los Angeles security litigation lawyer can provide you with support and guidance to make the legal process more manageable and may help you recover your monetary loss.
Los Angeles Security Litigation Lawyer Near Me 800-709-1441
Contact Ben Crump Law, PLLC About Your Case
Your financial stability plays a significant role in your quality of life, and losing your investment due to illegal practices or breaches of fiduciary duty by key corporate players can lead to catastrophe. While investing always involves taking a risk, the broker or firm you choose to manage your investment should value your confidence and make every effort to prevent the avoidable demise of your funds.
If you discovered that you lost your investment due to the illegal practices or reckless behaviors of an independent broker, brokerage firm, or other company, Ben Crump Law, PLLC can help you seek justice and the recovery of your funds. Call our legal team today at 800-932-1441 about your securities litigation case.
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