The health of the financial markets depends on trust. Everyone involved in promoting or selling securities must provide accurate and truthful information, and deal fairly with investors.
Sometimes brokers, accounting firms, law firms, and company executives act in their own best interests rather than the investors’ interests. When investors sustain financial losses based on false information or undue pressure, they may have grounds for a lawsuit seeking compensation.
Silver Law Group represents investors from all over the country in various types of securities class actions for conflict of interest. Our securities fraud lawyers have an impressive record of success recouping the losses of defrauded investors.
Conflicts of interest arise when someone’s personal interests diverge from their professional duty. In that situation, the person with a conflict has an obligation to put their personal interests aside and uphold their professional responsibility.
When stockbrokers or investment advisors have a conflict of interest that spurs them to give advice that causes you to lose money, you can turn to the Financial Industry Regulatory Authority (FINRA) for recovery. However, many other parties involved in the securities industry can have conflicts of interest that harm innocent investors. FINRA can hold financial advisors accountable, most other cases for violations of the federal securities laws are brought in state or federal court.
Corporate officers who are compensated based on profits may feel incentivized to overstate earnings or hide liabilities. Members of a company’s Board of Directors might personally benefit from the company entering or leaving a particular line of business, and vote accordingly. Accounting firms and law firms may have an interest in a particular deal going ahead or not, which could influence their activities and public statements. In many cases, third party professionals can be liable for aiding and abetting a breach of fiduciary duty.
Any of these types of conflicts are forms of securities fraud that could lead to investors losing money. If you believe statements or actions by someone with a conflict of interest influenced your investment, contact Silver Law Group. We will assess the situation and advise you of your legal options.
When small investors lose money due to securities fraud, including conflicts of interest, it is often not feasible for them to bring individual lawsuits. Recognizing that individuals might get away with their fraud without a mechanism for small investors to hold them accountable, the securities law allows investors to pursue class action lawsuits.
Every investor who bought or sold the stock during a specified period is eligible to join a lawsuit. One or more investors who have the most at stake will direct the litigation, and other investors need not be directly involved. These lawsuits often are in the courts for several years, but they usually settle. Investors split the settlement on a pro rata basis.
Many investors are familiar with conflict-of-interest rules for brokers and financial advisors, but may not be aware that others also have a duty to avoid conflicts. When someone in a position to influence the value of a stock acts in their own interest to your detriment, you may have valid cause to sue.
Speak with the knowledgeable attorneys at Silver Law Group about securities class actions for conflict of interest. We work on a contingency fee basis.
