Most cases fall into one or more of the following four categories. The first cAtegory involves the sale of unsuitable securities. An unsuitable sale to a customer typically means that there is a mismatch between the objective of the customer and what is recommended and sold to the customer. A good example is an elderly customer who wants a highly rated bond for a the sake of security and desires a steady stream of income and is sold a "junk" bond or a "penny" stock instead.
A second category involves churning. Churning a customer's account means excessive trading of the account for the sole purpose of generating excessive commissions. There are complicated mathematical formulas for determining churning. Therefore, it is recommended that a customer contact an attorney who specializes in securities law in order to determine if their account has been churned.
A third category involves unauthorized transactions or failure to properly execute an order. This means that a stockbroker or financial planner purchased or sold a security for you without first receiving your permission. When this occurs, it is crucial that you immediately complain in writing about the trade, not only to your broker/planner, but to his/her superior.
A fourth category involves your stockbroker/planner making a misstatement that influences your decision to purchase or sell stock. The misstatement must have had a major or significant influence in your decision to buy or sell the stock.
If you have a question regarding a legal
matter in the state of
Michigan contact AAAA Legal Center by Phone or E-Mail
MAIL
US
(E-Mail
transmissions are not confidential)
A stockbroker or financial planner is licensed by the state you live in and by the stock exchange which he/she is licensed to trade in. Therefore, he/she must abide by a high code of conduct and ethics otherwise known as his/her fiduciary duty to act in your best interests. When he/she breaches that duty, a claim arises.
If you have a question regarding a legal
matter in the state of
Michigan contact AAAA Legal Center by Phone or E-Mail
MAIL
US
(E-Mail transmissions are not confidential)
If it is a case under $10,000.00, then you may want to represent yourself before an arbitration tribunal such as the National Associations of Securities Dealers, Inc. (212) 858-4400. In a case over $10,000.00, it is best to consult an attorney who specializes in representing customers against stockbrokers/financial planners because most likely the opposing side will have highly trained attorney's from large firms or experienced in house attorneys.
If you have a question regarding a legal
matter in the state of
Michigan contact AAAA Legal Center by Phone or E-Mail
MAIL
US
(E-Mail transmissions are not confidential)
Most attorneys who specialize in this work take these type of cases on a contingency basis or part hourly/part contingency basis. Filing fees run from a few hundred dollars to $1,500.00, depending on the amount of money lost
If you have a question regarding a legal
matter in the state of
Michigan contact AAAA Legal Center by Phone or E-Mail
MAIL
US
(E-Mail transmissions are not confidential)
Assuming there is no settlement, the entire process takes approximately one year.
If you have a question regarding a legal
matter in the state of
Michigan contact AAAA Legal Center by Phone or E-Mail
MAIL
US
(E-Mail transmissions are not confidential)
