When you invest based on promises from brokerage firms and financial advisors, you expect these promises to be upheld. Unfortunately, it's not uncommon for these assurances to fall short or be misleading, potentially constituting a breach of contract. Such promises about managing your account or specific trading strategies are legally binding. You may have grounds for a claim if these commitments are not fulfilled, leading to mismanagement or financial losses. At Weltz Law, our experienced securities breach of contract lawyers are dedicated to helping investors like you hold financial professionals accountable and recover the damages you deserve.

Get in touch with Weltz Law today by calling (877) 905-7671 to understand if you have a claim for securities breach of contract.

What Constitutes a Securities Breach of Contract?

A securities breach of contract occurs when one party fails to fulfill their obligations as outlined in a contract related to securities transactions or services. This type of breach can involve various elements of securities operations, from investment management to brokerage services. Here are some common examples that constitute a securities breach of contract:

Failure to Follow Investment Guidelines

If a financial advisor or asset manager does not adhere to the agreed-upon investment strategies or ignores the client’s investment objectives, it can lead to significant financial losses and is considered a breach of contract.

Unauthorized Trading

Executing trades on a client's behalf without their explicit permission or in contradiction to the terms set out in the contractual agreement constitutes a breach. This is a serious violation as it undermines the client's control over their own investments.

Misrepresentation of Information

Providing inaccurate, misleading, or incomplete information regarding investments, risks, or costs associated with the services can also be a breach of contract. Investors rely heavily on the information provided by their brokers or advisors to make informed decisions.

Excessive Trading (Churning)

Churning refers to the excessive buying and selling of securities to generate commission fees without considering the client's best interests. This practice can erode investment returns and directly contravenes the duty of prudent management stipulated in most contracts.

Failure to Supervise

Brokerage firms are often contractually obligated to supervise their brokers and ensure compliance with all applicable laws and regulations. A failure to adequately supervise that leads to investor losses can be seen as a breach of contract.

Non-Disclosure of Conflicts of Interest

Contracts typically require advisors and brokers to disclose any potential conflicts of interest in their investment recommendations. Failure to disclose such conflicts can influence investment decisions to the client's detriment, constituting a breach.

Delay or Failure in Executing Orders

If a broker or financial advisor delays or fails to execute orders as agreed upon in the contract, and this action results in financial harm to the client, it can be considered a breach of contract.

Common Securities Breach of Contract Disputes

Securities breach of contract disputes can arise from various situations where one party fails to fulfill their legal obligations as outlined in a contract. Understanding the common types of disputes can help investors identify potential issues early and seek appropriate legal assistance. Here are some prevalent types of securities breach of contract disputes:

Unauthorized Trading

This occurs when a broker executes trades without the client's explicit consent, violating the terms of their agreement. Unauthorized trading can lead to substantial financial losses and is a frequent subject of breach-of-contract claims

Failure to Follow Investment Guidelines

Investors may have specific investment strategies or restrictions agreed upon in their contracts with financial advisors or brokerage firms. Disputes arise when these guidelines are not followed, often resulting in unsuitable risk exposure for the investor.

Misrepresentation or Omission of Information

This involves brokers or advisors providing false, misleading, or incomplete information about an investment's potential risks and rewards. Such misrepresentation can lead clients to make uninformed decisions, which can lead to financial losses.

Churning (Excessive Trading)

Churning refers to the excessive buying and selling securities to generate commissions. This practice can erode investment returns and directly conflicts with the broker's duty to act in the client's best interests.

Negligence in Managing Investments

This dispute arises when financial professionals fail to manage investments with the competence and care that a reasonable advisor would use under similar circumstances, leading to unnecessary losses for the investor.

Non-Disclosure of Conflicts of Interest

Brokers and advisors must disclose any conflicts of interest that might influence their investment recommendations. Disclosing such conflicts can lead to biased advice that prioritizes the advisor's benefits over the client's needs.

Delay in Executing Orders

When a broker delays executing orders without a valid reason, which results in financial detriment to the client, it can be considered a breach of contract.

How Our Securities Breach of Contract Attorneys Can Assist You

At Weltz Law, our attorneys are dedicated to providing exceptional legal support for cases involving breaches of securities contracts. We understand the critical nature of these cases and the significant impact they can have on your financial well-being. Here’s how our skilled team can assist you:

• Case Evaluation: We begin by conducting a comprehensive review of your case, examining all relevant documents and the nature of the alleged breach. Our thorough approach ensures we understand every detail and its implications.
• Legal Guidance: Our securities attorneys provide expert legal advice to help you understand your rights and the most effective legal actions available to you. We aim to clarify the complex aspects of securities law so you can make informed decisions.
• Representation in Legal Proceedings: Weltz Law stands by your side throughout all legal proceedings. We advocate fiercely for your rights and interests, ensuring your voice is heard.
• Negotiation of Settlements: Our team excels in negotiations, working diligently to secure a settlement that fairly compensates you for the breach. We strive for resolutions that meet your needs and restore your financial position.
• Trial Preparation: Should your case go to the evidentiary hearing, we prepare meticulously by gathering compelling evidence, organizing witness testimonies, and constructing a strong argument to present in arbitration.
• Pursuing Maximum Compensation: We are committed to aggressively pursuing the fullest compensation available under the law to cover all your losses and any additional eligible damages.
• Post-Trial Support: After the conclusion of the trial, we continue to support you by handling all necessary post-trial paperwork and guiding you through the steps to collect your awarded compensation.

At Weltz Law, we recognize high stakes in securities disputes. Engaging our seasoned securities breach of contract attorneys ensures your interests are protected to the highest standard. Contact us today to discuss how we can help you navigate and resolve your securities breach of contract issues effectively.

Key Elements of a Securities Breach of Contract Claim

Securities breach of contract claims are essential for holding brokerage firms and financial advisors accountable when they fail to meet their obligations to investors. Successfully recovering compensation requires proving several critical elements:

• Existence of an Enforceable Agreement: Demonstrate that a valid and enforceable agreement existed between you and the brokerage or advisor. This includes specifying the terms of the contract, which can be challenging with implied or oral agreements.
• Performance by the Plaintiff: Show that you have met all your obligations under the contract. It's crucial to demonstrate that you have approached the situation with "clean hands," meaning you are not in breach of the contract.
• Breach of the Agreement: Prove that the broker or their firm failed to fulfill their contractual duties. The breach could be due to actions not aligning with the contract terms or failing to act when required.
• Damages Due to the Breach: Establish that the breach resulted in financial damages. This may include direct losses, such as missed opportunities for profit, or indirect losses, such as greater financial harm due to the advisor’s actions.

Navigating these elements requires meticulous attention to detail and a deep understanding of securities law. Weltz Law is equipped to help clarify these complexities and pursue the compensation you rightfully deserve.

What to Do If You're a Victim of a Securities Breach of Contract

If you face a potential securities breach of contract, taking immediate and well-informed steps is essential for protecting your rights and interests. Here’s a structured approach to navigate this challenging situation:

1. Consult with a Securities Breach of Contract Lawyer: As soon as you suspect a breach, consult a securities breach of contract lawyer. An experienced securities breach of contract attorney can provide crucial guidance and assess the strength of your case.
2. Review the Contract: Your breach of contract lawyer will help you review the contract terms to identify specific obligations and promises made by the financial advisor or brokerage firm. Understanding these details is critical to determining whether a breach has occurred.
3. Gather Documentation: Collect all relevant documents, including contracts, correspondence, account statements, and any records of transactions. These documents will serve as essential evidence in your case.
4. Document Your Interactions: Keep a detailed record of all communications with your broker or advisor regarding the issue. This includes dates, times, what was discussed, and any decisions or promises made during those interactions.
5. Assess Damages: Work with your securities breach of contract lawyer to quantify the financial impact of the breach. This includes calculating any losses incurred due to the breach and estimating potential future losses if applicable.
6. Explore Legal Options: Discuss with your experienced securities lawyer the best legal avenues for pursuing compensation, whether through arbitration, negotiation, or securities litigation.
7. Initiate Legal Action: If negotiations are unsatisfactory, your experienced securities lawyer will prepare to initiate formal legal proceedings. This involves filing the necessary legal documents and following through with the dispute resolution process.
8. Stay Informed and Involved: Throughout the legal process, stay informed about the progress of your case and collaborate closely with your lawyer to make timely decisions.

By taking these steps, you can effectively address a securities breach of contract and work towards recovering any losses you may have suffered. Engaging a skilled securities breach of contract lawyer early in the process is crucial in ensuring your rights are fully protected and you receive the compensation you deserve.

Why Choose Weltz Law?

When facing challenges in securities law, choosing the right legal representation can make a significant difference in the outcome of your case. Here’s why Weltz Law stands out as a premier choice for handling your securities issues:

• Dedicated Legal Support: At Weltz Law, we focus on securities law, ensuring that all our clients receive specialized attention. Our team is committed to providing personalized legal strategies tailored to your specific situation.
• Proven Track Record: We have a history of success in resolving complex securities disputes, recovering substantial damages for our clients. Our results speak to our deep understanding of securities laws and effective securities litigation skills.
• Client-Centered Approach: We believe that effective legal representation requires not just legal expertise but also a strong client-lawyer relationship. We listen to your concerns, explain your options clearly, and tailor our approach to fit your specific legal needs.
• Aggressive Advocacy: Our lawyers are known for their vigorous advocacy in the courtroom, during negotiations, and in arbitration. We fight tirelessly to protect your interests and achieve the best possible outcomes.
• Nationwide Service: With the ability to serve clients across the United States, no matter where you are located, Weltz Law provides top-tier legal support. We handle cases from coast to coast, offering consistent and competent service.
• Transparent Communication: We keep our clients informed every step of the way, ensuring that you understand the progress of your case and the strategies we employ. Our firm upholds the highest standards of integrity and transparency in all our communications.

Choosing Weltz Law means partnering with a firm that has the legal acumen to handle complex securities cases and values and prioritizes your best interests.

Contact a Seasoned Securities Arbitration and Litigation Attorney

Investors often face substantial losses due to a breach of contract by the broker or brokerage firm. If you suffered financial harm due to a breach of contract, it is vital to confer with a securities attorney whether you can recover compensation. Weltz Law has represented parties in securities litigation and arbitration hearings for over two decades. Contact us today.