Perpetrators of securities fraud can cause bond losses through schemes that deceive investors with false information or misrepresentation. Investors can lose their entire principal investment, especially when a scheme collapses or the issuer defaults. Even if the bond doesn’t default, hidden fees and markups can significantly reduce the actual return an investor receives. Bonds are generally considered less risky than stocks because they pay a fixed rate of return and are considered a debt of the issuing company. However, bonds can be very risky and many companies inflate their financials to help secure additional financing through debt or bond offerings.

Securities fraud class actions for bond losses are lawsuits that allow a large group of investors who were harmed by the same party to seek legal recovery. If you have sustained bond losses because of fraud, do not hesitate to contact the securities fraud class action attorneys at Silver Law Group to find out how we can help you get your money back from the responsible companies and individuals.

What Are Common Bond Fraud Schemes?

Bond securities fraud frequently results in steep monetary losses for the investor and gain for the perpetrator. This type of fraud violates securities laws and can include a wide range of illegal activities, including:

  • Manipulating the price through false information: Fraudsters can disseminate false or misleading information about the issuer of a bond to artificially inflate its price. Once the price is high, the perpetrators dump their own holdings, causing the bond’s value to plummet.
  • Ponzi schemes: In these schemes, new investors’ funds are used to pay promised returns to earlier investors. For bonds, a fraudulent investment manager may offer fixed-income products like bonds, but never actually invests the money. The manager then fabricates statements to maintain the illusion of profitability until the scheme inevitably collapses.
  • Counterfeit securities: Fraudsters can create and sell counterfeit bonds, which are worthless. This includes counterfeiting U.S. savings bonds or other government-issued securities.
  • Misleading financial statements: A company issuing bonds may deliberately overstate its revenues, understate its costs or liabilities, or engage in “creative” accounting to present a healthier financial picture than is accurate.
  • Failure to disclose material facts: The issuer of a bond, or the municipal advisor underwriting it, may fail to disclose critical information to investors.

If you have incurred bond losses due to securities fraud, an attorney at Silver Law Group can help you pursue legal recourse to recover damages through a class action lawsuit. We work on a contingency fee basis, so you won’t owe us anything unless we successfully secure a settlement or win your case.

Joining a Securities Class Action for Bond Losses

A securities class action for bond losses can carry the potential for a greater collective settlement and hold corporate defendants accountable for misconduct. By sharing expenses across a large group, individual investors avoid the high costs of pursuing a lawsuit on their own.

For investors with smaller individual losses, joining a class action is more feasible and can increase the likelihood of some financial recovery. These lawsuits can shed light on systemic issues and force corporations to act more responsibly in the future.

In a bond loss securities fraud claim, an attorney files a class action lawsuit on behalf of a group of investors who were affected by the same misconduct. The court reviews the case to determine if it can be certified as a class action. Once a class is certified, eligible class members are notified of the lawsuit and the affected period. Members have the right to opt out and pursue an individual lawsuit if they choose.

In the event of a successful settlement or judgment, the awarded funds are distributed among all eligible class members based on their losses. Investors typically need only to submit a claim form to receive their portion.

Contact Our Securities Class Action Attorneys About Recovering Your Losses From Bond Fraud

Investors who suffer fraudulent bond losses can endure substantial financial harm to their portfolios and retirement savings. Securities fraud class actions for bond losses can provide a viable means of loss recovery for injured investors.

If you have lost money to bond fraud, our team of experienced lawyers can evaluate whether you could combine your claim with other investors who suffered similar losses. We operate on a contingency fee basis, which means you owe us nothing unless we win your case. Contact Silver Law Group today to request your complimentary case consultation.