We know that securities fraud might seem like a big topic that can be difficult to navigate. However, that should...
Securities fraud often involves a widespread scheme to deceive investors into making investment decisions about securities like stocks or bonds based on false information. Unfortunately, both inexperienced and sophisticated investors can be unwittingly drawn into these schemes. Securities fraud can have devastating consequences for investors of all backgrounds and financial situations, including significant monetary losses.
The securities fraud attorneys at Silver Law Group regularly represent investors nationwide in class action and individual litigation against the perpetrators of these fraudulent schemes. Simply because an investor is sophisticated or an accredited investor does not absolve a company from failing to disclose all material facts about an offering.
Any investor can suffer financial harm from a broker or a firm’s fraudulent misrepresentations or failure to disclose material facts. Having investment experience or market knowledge does not necessarily protect you when a trusted financial professional or institution intentionally or negligently fails in their duty of care. Common examples of securities fraud include:
Sophisticated investors can experience securities fraud due to a combination of factors, and they certainly will not have expertise in every sector. Potential vulnerabilities, such as complex investment strategies and pressure to invest immediately, can be exploited by fraudsters and result in significant losses to both individual and institutional investors.
Individuals involved in the securities industry have a duty to act with reasonable care when providing information to investors that would cause them to buy or sell. This means they should diligently research and disclose material information about investments, and avoid any misleading or deceptive statements that could harm investors.
If an investment professional or firm fails to meet the duty of care and their actions lead to investor losses, they can be liable for securities fraud.
Class action lawsuits can be an effective option for large groups of investors who have suffered losses due to the actions of the same defendant to seek financial recovery for securities fraud. When investors combine their claims into a class action, they have the opportunity to collectively use their leverage against large corporations and financial firms while pursuing fair compensation for all.
In a successful class action, investors are compensated according to the nature of their losses, based on factors such as the number of shares they owned and the price at which they purchased the securities. A class action can also give smaller investors a viable way to pursue financial recovery they might not otherwise have achieved individually due to the complexity and expense of litigation.
Sophisticated investors might have had more money invested than many others in the class. The good news is they will receive settlement funds that are proportionate to the loss, rather than split equally among all claimants.
Even the most wealthy and experienced of investors can fall victim to a nefarious securities scheme or a negligent third-party who failed to warn of the dangers. The legal team at Silver Law Group can investigate the situation further and explore your legal rights to initiate or join litigation.
If you are a successful, experienced investor, you have just as much legal protection from securities fraud as an investment novice. Contact Silver Law Group as soon as possible to discuss your legal options after experiencing financial losses in public or private securities due to unlawful actions.
Fill out the contact form or call us at (800) 975-4345 to schedule your free consultation.