West Palm Beach Omitting Or Misrepresenting Information Lawyer
It should come as no surprise that brokers are obligated to give their customers truthful and material information that properly discloses the nature of recommended investments and the risks associated with them. Similarly, a broker cannot fail to disclose important information that a reasonable investor would want to know before making an investment decision. Unfortunately, many investors in their zeal to secure a commission do actively mislead their clients about the risks associated with a particular investment or fail to provide the client with an adequate understanding of what the investment product is. When this misconduct occurs, the securities litigation lawyers at McCabe Rabin in West Palm Beach help investors hold brokers and their firms accountable for the damage they have caused by omitting or misrepresenting important information about an investment.
Material Misrepresentations are a Form of Fraud
A material misrepresentation is fraud, and it is a violation of both Florida and Federal securities laws. An omission or misrepresentation is considered material if it affected your decision on whether to follow the broker’s recommendation.
Misrepresentations and omissions can take on many forms, such as:
- Risks – downplaying the risks involved in a particular product or investment strategy
- Performance – overselling the performance of a stock, bond or mutual fund
- Solvency – misrepresenting a company as solid when it is actually teetering on bankruptcy
- Suitability – selling an unsuitable investment by hiding important facts.
What do You Know about Your Broker?
Your broker seems very knowledgeable and trustworthy, and you believe you have found a reputable firm, but what do you really know about your broker? Through websites such as FINRA’s BrokerCheck, you can learn important information about your broker, such as how many times he or she has taken licensing exams, how often the broker switches firms, and importantly, how many times the broker has been sued and the outcome of such lawsuits. If you suspect that you are not being treated appropriately by your broker, the attorneys at McCabe Rabin can help you find out whether your broker’s actions have been deceitful and harmful to your investments.
Stop Stockbroker Fraud and Hold Them Accountable for Your Losses
Being a victim of fraud is nothing to be ashamed of or embarrassed about. Even the most sophisticated investor can be misled and harmed when a broker actively omits or misrepresents important information. If you believe that your broker has failed to properly and accurately tell you about the nature or associated risk of a particular stock, bond, mutual fund or other investment, call the Florida securities litigation attorneys at McCabe Rabin for a free consultation. We can be reached at our West Palm Beach office at 561-659-7878, toll free at 8777-915-4040, or you can contact us online to schedule a consultation. There is no fee unless we obtain a recovery for you.