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NATIONWIDE REPRESENTATION

Under the securities laws, a prediction or statement of opinion by an investment professional can be a fraudulent misrepresentation when the investment professional has "no reasonable basis" for the statement. For example, statements by an investment professional that a particular stock "will break 50 by June" or the like almost never have a reasonable basis, constitute fraud and can be grounds for a claim if the investor reasonably relies upon them in making a losing investment.

Some commonly heard misrepresentations are:

  • "Your account will be worth $X by the end of the year."
  • "This stock is a sure thing."
  • "This stock will hit Y by June."
  • "We monitor your account and sell before you lose money."
  • "The company is about to announce a merger."
  • "The company is about to announce a major deal."
  • "We control the price of the stock and are taking it up."
While many of the foregoing statements always constitute fraud or misrepresentation, some may only be true if the speaker has a "reasonable basis." On the other hand, improper omissions may occur if an investment professional fails to disclose information, such as certain investment risks, to an investor as required under the circumstances.

If you believe that you have suffered an investment loss due to improper professional management, promptly contact one of our attorneys for a free consultation at (800) 433-5336. Or, if you prefer, you may e-mail a complete description of your potential case to one of our attorneys for a no obligation evaluation.

While every case is unique, most broker-dealer cases are subject to mandatory fee-based arbitration. We will help you objectively and fairly evaluate your claim and, if appropriate, assist you in aggressively pursuing the matter on a contingency fee basis.