When you invest in a company, you rely on the accuracy of its financial disclosures to assess risk and value. One of the most deceptive types of securities fraud occurs if a corporation fails to disclose significant liabilities. These omissions can create an artificially inflated stock price, which leaves investors vulnerable to a price collapse once a disclosure reveals the company’s true financial situation.
If you suffer substantial losses after a concealed debt or legal obligation comes to light, the team of securities fraud class action attorneys at Silver Law Group has the forensic and legal experience to hold negligent corporations and their executives accountable for their silence. We handle securities fraud claims of failure to disclose liabilities on a contingency fee basis, which means you owe us nothing unless we win your case.
If you lose money due to a corporation knowingly hiding financial obligations that would decrease its stock price or creditworthiness, the law entitles you to compensation through a securities fraud claim. Material omissions that can constitute fraud include:
If a corrective disclosure exposes a company’s hidden ledger, its stock price typically undergoes a precipitous collapse. Investors are left holding devalued shares, while the executives and board members who signed off on the fraudulent reports may have already protected their own interests.
Scott Silver and the team of securities fraud attorneys at Silver Law Group have extensive experience holding major corporations, financial institutions, and other parties accountable and have recovered hundreds of millions of dollars for victims nationwide.
In addition to individual executives, a securities fraud claim can hold various institutions accountable for failing to disclose or detect material liabilities. For example, auditors can be held liable if they falsely certify that a company’s financial statements comply with professional standards while knowing—or recklessly ignoring—that someone hid significant liabilities.
In initial public offerings, underwriting investment banks have a strict duty to perform due diligence. These institutions can be held liable for material omissions in a registration statement unless they can prove they performed a reasonable investigation. Brokerage and investment advisory firms are almost always legally liable for the wrongdoing of their representatives.
If a firm misrepresented or failed to disclose the risks of an investment to a client, the firm itself can be held accountable for the resulting losses. Likewise, if a custodial or commercial bank knowingly permitted suspicious transfers or aided in the concealment of fraudulent activity, civil litigation can hold them responsible for aiding and abetting fraud.
At Silver Law Group, our attorneys regularly represent clients in both large-scale class action lawsuits and high-value individual securities fraud litigation. We recognize that while class actions are powerful for widespread fraud, sophisticated investors with substantial losses can sometimes achieve a better outcome by pursuing an independent claim.
A company’s failure to be transparent about its financial obligations isn’t just a clerical oversight—it’s a betrayal of the investor-issuer relationship. Reclaiming losses in securities fraud claims of failing to disclose liabilities requires a law firm with a proven track record in such cases.
Silver Law Group handles these wide-ranging claims on a contingency fee basis, meaning you pay nothing unless we recover money for you. Don’t let corporate deception dictate your financial future. Contact us today for a free, confidential consultation and let our nationally recognized advocates fight for the transparency and justice you deserve.
