NEW YORK-BASED NEGLIGENCE ATTORNEYS

Assisting Clients on Long Island & Across the Nation

Brokers and financial advisors do not need to commit fraud or act with malicious intent to be held accountable for the harm caused by their broker misconduct. Investors can pursue claims against investment professionals who caused financial harm through negligent or reckless acts.

If you suffered financial losses due to the negligence of a broker or financial advisor that you entrusted with your investments, then you should immediately consult with our skilled securities litigation attorneys to discuss your case and whether you can seek compensation.

At Weltz Law, our team is here to assess the evidence in your case to determine which claims you can pursue against the individuals or entities that caused your harm. Weltz Law proudly represents investors harmed by the negligence of their brokers in securities arbitration and litigation in New York and throughout the nation.

To schedule a consultation with our law firm, please give us a call today at (877) 905-7671.

Can I Sue My Stock Broker for Negligence?

If you believe that your stock broker has acted negligently in managing your investments, you may be able to bring a legal action against them. In order for the claim to be successful, you must demonstrate that the broker had a duty of care towards you as their client and breached it through negligent behavior.

Examples of such behavior include:

• Failing to follow your instructions
• Providing incorrect advice
• Failing to adhere to industry regulations

You must also demonstrate that the breach caused you a financial loss. It is important to note however, that while suing a broker may seem like the best option in such situations, it can be a long and costly process. It is advisable to seek legal advice before proceeding.

Duties Imposed on Brokers & Financial Advisors

Federal laws and regulations impose a fiduciary duty on financial advisors, which essentially means that they are required to put their clients first. Specifically, financial advisors are obligated to disclose any potential conflicts of interest and explain the benefits and detriments of a particular investment.

Advisors also owe their clients a duty of loyalty and are obligated to act in good faith, which means that they must act in a client’s best interest. While brokers do not owe a fiduciary duty to their clients, they nonetheless are required to avoid causing their clients financial harm. Furthermore, brokers owe a duty of suitability to their clients. This means that brokers must recommend investments that are suitable to the client’s financial goals, resources, and risk tolerance.

Proving Broker & Financial Advisor Negligence

If either a broker or a financial advisor negligently breaches one of the duties owed to a client, they can be liable for any harm caused by the breach. Negligence claims differ from many other claims filed in securities lawsuits because they do not require the plaintiff investor to show that the financial services professional acted fraudulently or with malicious intent. Instead, an investor who alleges harm due to negligence must show that the broker or financial advisor who allegedly caused the harm owed the investor a duty, and the duty was breached. The investor must also prove that the breach caused the investor to suffer financial losses.

A common example of broker negligence involves failing to diversify and over-concentrating in one type of investment, which can cause financial losses when certain types of investments are in jeopardy. Similarly, if a broker recommends an investment that poses a higher risk than the investor is comfortable with, it may constitute negligence.

If an investor suffers substantial losses because their broker failed to sell an investment in a timely manner, or because the brokerage firm didn’t warn the investor to take action to correct an issue, it can be considered negligence as well. In many cases, an investor harmed by negligent acts will have a claim against both the broker and the firm that employs the broker.

Negligence claims often accompany other claims in a securities lawsuit, such as misrepresentation, unsuitability, breach of fiduciary duty, and fraud. If you believe that you were harmed by the negligent actions of your broker or financial advisor, then you should consult with a seasoned securities litigation attorney at our law firm to discuss your options for seeking compensation.

Meet With Our Trusted Securities Attorney to Discuss Your Legal Options

Financial services professionals have a duty to act in the best interests of their clients, so If you suffered monetary losses due to the negligence of your broker or financial advisor, you should find out about your options for seeking damages. We have been representing parties in securities arbitration and litigation for over 25 years, and our dedicated legal professionals will assertively pursue the full amount of damages that you can recover for your harm.