Shareholder disputes can be a significant challenge for businesses, often leading to financial losses, damaged relationships, and even legal battles. However, with the guidance of a skilled business lawyer, these disputes can be effectively managed and resolved. In this blog, we will explore the key ways in which a business lawyer can assist you in handling shareholder disputes, offering tangible tips to help you navigate these complex situations.

1. Understanding Shareholder Rights & Obligations:

A business lawyer can help clarify the rights and obligations of shareholders as outlined in the company's governing documents and applicable laws. By understanding the legal framework, shareholders can make informed decisions and avoid unnecessary conflicts. Clear communication of roles, responsibilities, and voting rights can prevent disputes from arising in the first place.

2. Facilitating Communication & Mediation:

Effective communication is key to resolving shareholder disputes. A business lawyer can serve as a neutral mediator, facilitating discussions between shareholders to address concerns, grievances, and differing viewpoints. Mediation allows parties to find common ground, explore compromise, and work towards a resolution that is acceptable to all parties involved.

3. Negotiating Buyouts & Exit Strategies:

In cases where a shareholder wishes to exit the company, a business lawyer can assist in negotiating fair buyout terms and exit strategies. This includes valuing the shares, determining payment terms, and ensuring compliance with legal and tax requirements. Negotiating a smooth exit can help prevent disputes from escalating and minimize disruptions to the business.

4. Resolving Breach of Fiduciary Duty Claims:

Shareholders owe fiduciary duties to the company and fellow shareholders. Breach of these duties can lead to disputes and legal actions. A business lawyer can analyze the situation, provide guidance on the appropriate course of action, and represent shareholders in resolving breach of fiduciary duty claims through negotiation or litigation if necessary.

5. Litigation as a Last Resort:

While litigation is often a last resort, there are instances where it becomes necessary to protect shareholder interests. A business lawyer experienced in corporate litigation can advocate for shareholders in court, presenting evidence and arguments to seek a favorable outcome. Litigation may be pursued when all other attempts at resolution have been exhausted.

6. Protecting the Company's Interests:

A skilled business lawyer not only represents individual shareholders but also works to protect the best interests of the company as a whole. This includes ensuring compliance with applicable laws, maintaining corporate governance standards, and safeguarding the company's reputation throughout the dispute resolution process.

7. Crafting Agreements & Bylaws:

Preventing future disputes starts with well-drafted shareholder agreements and company bylaws. A business lawyer can assist in creating these documents, outlining procedures for decision-making, dispute resolution, and shareholder exits. Clear and comprehensive agreements can prevent misunderstandings and disagreements down the road.

You Can Trust Weltz Law

Shareholder disputes can certainly be complex and disruptive, but with the guidance of a knowledgeable business lawyer, you can effectively manage and resolve these challenges. Weltz Law, a leading employment and commercial litigation firm in Mineola, NY, has a team of experienced attorneys ready to assist you in navigating a variety of legal disputes. Contact us today to learn more about how we can help protect your business interests.
Call us today at (877) 905-7671.

When investing in the stock market, it is essential to assess your risk and reward while making sure you are making financially sound decisions. And while you may want to trust your stock broker implicitly, this doesn't always mean they have your best interest in mind.

Why Trusting Your Broker May Not Always Be the Best Decision

Many people turn to brokers to help manage their portfolios. However, while brokers are experts in their field, they also have their own agendas. They may be incentivized to push certain investments or products that may not align with your best interests. Additionally, even the most honest brokers can make mistakes or misjudge the market. It's crucial to educate yourself and do your own research before making any investment decisions.

Reasons to Question Your Stock Broker's Advice

It's always wise to question your stock broker's advice, even if they seem knowledgeable and experienced. Remember, their ultimate goal is to make money for themselves and their company, not necessarily for you as the investor. Factors such as commissions and quotas can sometimes play a role in the recommendations they make. It is essential to research and investigate thoroughly before making any investment decisions.

How to Spot Signs of Unreliable Brokers

When investing, first ensure that you are working with a reliable broker. But how do you spot whether the broker you are dealing with is reliable? One of the primary signs of an unreliable broker is excessive communication without substantial information to share. They might try to lure you in with impractical promises and claims. Additionally, if the broker keeps pushing you to invest in a specific product without giving you enough time to analyze all the available options, that is also a sign of an unreliable broker.

Consider Hiring an Attorney if Your Broker Committed Fraud

One sign of an untrustworthy broker is if you catch them committing fraud. That’s why it is crucial to seek legal advice if you suspect this or other untrustworthy actions. Hiring an attorney can give you the knowledge and guidance to take appropriate legal action against your broker. An experienced attorney can help you understand the legal process, gather evidence, and represent you in court.

When dealing with complex legal issues such as fraud, Weltz Law is here for you. Our experienced securities litigation attorneys can provide assurance that you are following the right course of action to defend your rights and safeguard your finances.

Get started with Weltz Law today - contact our nationwide securities litigation team online or by phone. (877) 905-7671

If you are an investor who suffered losses from broker misconduct, know that you are not powerless. You can take many steps to receive the compensation and justice you deserve. The team at Weltz Law explores three avenues and what each involves to help get a resolution.

Defining Broker Misconduct and How it Can Result in Financial Loss

Broker misconduct is a term used to describe any unethical activity by a financial advisor or broker that results in a financial loss for their clients. This could include making unsuitable investment recommendations or behavior such as unauthorized trades, deceptive practices, fraud, or failure to execute orders according to the investor’s instructions. When an investor has suffered financial losses due to brokerage misconduct, they may have several legal remedies available, such as arbitration, mediation, or taking their dispute to court as part of a civil lawsuit.

Steps to Take if You Suspect Broker Misconduct

If you suspect your broker has engaged in misconduct, there are several ways to take action.

How a Broker Misconduct Attorney Can Help

If you are a victim of broker misconduct, the first step should be contacting an attorney specializing in this area. The broker misconduct attorneys at Weltz Law can provide the necessary legal resources to help you understand and navigate the various processes involved in defending your rights and pursuing compensation for financial losses that may have occurred. This includes providing information about possible courses of action such as arbitration, mediation, or a civil lawsuit.

With our experience in this field, the broker misconduct attorneys at Weltz Law can give you valuable knowledge about strategies and tactics vital for success at any stage. We will work diligently and tirelessly towards aiding you in recovering losses due to bad, negligent, or fraudulent advice. Contact Weltz Law for help filing a claim! (877) 905-7671.

Investors and consumers alike can be vulnerable to broker misconduct and financial fraud. Practicing financial self–defense is essential to protect yourself from potential pitfalls. But you can take proactive steps to guard against unscrupulous sales activities or deceptive practices.

Weltz Law breaks down the five tips you should know to protect your investments.

1. Get informed — Research Before Investing

Proper due diligence into securities and investments is a critical financial self-defense strategy. That’s why everyone can benefit from taking the time to do their research before investing in any product or service.

Among other steps, this means:

All of this investment homework can help you make informed decisions with your savings and investments.

2. Always Ask Questions — Don’t Be Afraid to Demand Answers or Clarification

Asking questions is a crucial financial self-defense tip when investing and working with brokers. Always be direct, informed, and assertive when approaching potential broker misconduct; never be afraid to insist that they provide clear answers or further explanations on the matter. This can help avoid misunderstandings and may even unearth vital information that secures your finances in the long run.

Furthermore, by voicing your concerns and making your expectations known from the start, you can minimize the risk of future broker misconduct and ensure financial security. Asking questions keeps you informed and builds trust between yourself and the broker.

3. Keep Records — Save All Communications With Your Broker, Including Emails and Phone Calls

An effective financial self-defense strategy for protecting yourself from broker misconduct starts with record keeping. You should save all your communications with your broker, including emails, phone calls, and any other correspondence.

In the event of investigations or disputes, it is essential to have documented references to actions taken, decisions made, and discussions between you and the other party. Keeping records is a protective measure that safeguards you if needed.

4. Report Misconduct — File a Complaint with FINRA

Protecting yourself from broker misconduct is essential for maintaining financial well-being. A crucial part of financial self-defense is filing a complaint with the Financial Industry Regulatory Authority (FINRA) if you suspect any misconduct from your broker.

Complaints to FINRA can help you get restitution and justice if any fraudulent activity has occurred. Moreover, FINRA may take steps to prevent similar misconduct in the future.

5. Find an Advocate - How a Securities Arbitration and Litigation Lawyer Can Help

Finding an advocate can be a powerful tool if you feel your rights as an investor are being violated. Consulting with an experienced lawyer or financial advisor can help protect you from broker misconduct and provide invaluable financial self-defense that may otherwise feel out of reach. An experienced professional can help evaluate your situation, determine the best options, and guide you through dealing with broker misconduct.

Advocating for Investors’ Rights

Taking action to protect your investments from broker misconduct is paramount. Individuals can engage in financial self-defense and safeguard their investments with a few simple steps, such as getting informed, always asking questions, keeping records, finding an advocate, and reporting misconduct.

When working with Weltz Law, you’ll have expertise and experience on your side in matters of investor rights and fraudulent broker conduct. We have successfully litigated claims exceeding $50 million for our clients and want to help with your claim. Ensure you’re getting the best possible support for your claim — reach out to Weltz Law online or by phone today. (877) 905-7671.

Most Common Claims of Stockbroker Negligence

When hiring a broker, you expect that person to take care of your money and make wise decisions about where to place it. You know there is a risk, but by hiring a broker, you’re hoping that calculated risk is far less than if you were to make investment decisions on your own.

In a perfect world, the above scenario would always play out. Unfortunately, brokers can make decisions that are not only in your best interest but unethical. That’s where investors can have control by filing a potential claim.

Differences Between Negligence, Gross Negligence, and Misconduct

While all three are not situations you want to catch a broker in, there are significant differences between negligence, gross negligence, and misconduct.


Ordinary negligence is when someone makes a bad decision when they know what the correct decision should be. This happens commonly amongst everyone — for example, texting on a cell phone while driving a vehicle. Every driver knows this is dangerous, and in many states is against the law, but many drivers still choose to make this risky decision.

In investing, an example of negligence could be a failure to diversify a portfolio. This is when a broker purposely chooses not to invest in a broad range of businesses with a variety of investment types. Unless someone goes to a broker and tells them to specifically keep their money in all one type of investment, it is usually frowned upon not to have a wide array of investments in a portfolio.

Another example is the broker putting money in an investment that has a higher risk than what the investor feels comfortable with or is not on the same level of risk as to the investor’s current investments.

If a broker has a conflict of interest with one of the stocks they’re putting money into and the broker does not disclose this information to the investor, this would be a sign of negligence. An example of this is if the broker would have a personal financial gain if more of the company’s stocks were bought, so the broker puts some of their investor’s funds into that stock.

Other examples of negligence include if the broker did not sell a poor-performing stock in a timely manner or if the broker did not give enough notification to an investor about taking action to correct an issue.

All of these scenarios show that a broker may not be taking action to purposely cause the investor ill-will, but it does show that the broker may not be making the best decisions for the investor.

Gross Negligence

Gross negligence is when a broker knows the potential consequences of their actions and continues to make reckless decisions. An example of this would be a broker reading negative information about a company and knowing the company may discontinue, yet the broker still puts an investor’s funds into that company’s stock.


Broker misconduct differs from either type of negligence as this is when a broker purposefully and maliciously takes action on your behalf that is not in your best interest. Examples of broker misconduct include:

What to Do If My Broker is Negligent

If you suspect your broker of any misconduct, including negligence, it’s best to talk to an attorney first. They can tell you whether or not there are real signs of negligence or even broker misconduct. For all your investment question needs, contact Weltz Law. Our team of attorneys is here for you with offices in New York, California, and Florida — reach out today to get started. (877) 905-7671

What are Examples of Broker Misconduct?

When you’re investing, you expect your broker to make wise decisions with your money. There are some cases, however, where brokers will do the opposite.

If you suspect broker misconduct, you’ll want an experienced team to represent you. At Weltz Law we have your best interests at heart and will fight to get your hard-earned money back.

Examples of Broker Misconduct

Breach of Fiduciary Duty

A fiduciary duty is an obligation of a person to act in the best interest of their client—most importantly, putting the client’s interests ahead of their own. Brokers owe a fiduciary duty to their clients. Additionally, brokers must share any important information related to a transaction and not hide information that doesn’t match the client’s goals.

Account Churning/Overtrading

When a broker buys or sells securities for the client, the broker usually earns a commission. Overtrading, or account churning, is when the broker continuously trades just to earn a commission. This process is not only unethical but also against federal rules and regulations.

Failure to Supervise

The FINRA (Financial Industry Regulatory Authority) specifically states that there must be supervision of brokers at a brokerage firm. If a broker is found to be noncompliant with security regulations and laws, then the brokerage firm may be held accountable for negligence.

Solicited and Unsolicited Trades

A solicited trade is usually initiated by the broker, whereas an unsolicited trade is typically initiated by the client. If the broker marks the trade as unsolicited when it wasn’t, that could be a case of fraudulent activity.

Unauthorized Trades

While a broker makes trades on your behalf, they are not allowed to make trades to non-discretionary accounts without your permission. A broker must have written permission from the client to make a trade to a non-discretionary account.

The actions above are just a few examples of broker misconduct. If you suspect broker misconduct, you’ll want to contact an attorney right away to help recover your losses. Contact Weltz Law for a free consultation today.

Follow Us
Main Office

1 Old Country Rd, Ste 275
Carle Place, NY 11514

Map & Directions
Boca Raton Office

By Appointment Only
980 N Federal Hwy #110
Boca Raton, FL 33432

Map & Directions
Rockville Center Office

By Appointment Only
5 N Village Ave 2nd Floor
Rockville Centre, NY 11570

Map & Directions
Beverly Hills Office

By Appointment Only
9171 Wilshire Blvd #500
Beverly Hills, CA 90210

Map & Directions
New York City Office

By Appointment Only
1441 Broadway 3rd Floor
New York, NY 10018

Map & Directions
Boca Raton Office
Map & Directions
Rockville Center Office
Map & Directions
Beverly Hills Office
Map & Directions
Main Office
Map & Directions
New York City Office
Map & Directions

Attorney Advertising | Prior results do not guarantee a similar outcome. The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.