Wrong Investment Advice

HAS YOUR ACCOUNT LOST MORE THAN 25% OF ITS VALUE?

Large losses in your account may be a sign that you broker may have been motivated by commissions or other improper reasons and made investment decisions that are not appropriate for you. This is known as wrong investment advice.

An investment recommendation must be suitable and appropriate for you. A broker is not permitted to recommend or solicit a trade or investment strategy before determining that the recommendation is consistent with your investment objectives, needs, and risk tolerance. A broker has a duty to only recommend sensible investment products and strategies.

We have successfully sued brokers for making unsuitable or inappropriate investments recommendations by showing the following:

1. You did not know or understand the risks of loss involved a particular investment.
2. You could not afford to take the risk that the investment would decline in value.
3. Your investment objective was contrary to the type of investment made by the broker.

Specific examples of unsuitable investments include mutual funds that are too aggressive for your ability to take risks. Another common example of unsuitable investments involves selling variable annuities, a long-term investment, to seniors.

You may also be able to recover some or all of your stock losses if you told the broker you wanted lower risk investments and the broker chose high risk investments. The same is true if the broker chose investments that didn’t meet your investment objectives or time frame.
There are many situations in which a broker can be sued for choosing investments that are unsuitable.

We can help you understand whether the losses in your account are a result of this kind of stock broker misconduct.