PRACTICE AREAS
Securities Litigation
We handle cases in federal courts, in state courts, and before arbitration forums like those administered by the
National Association of Securities Dealers and the New York Stock Exchange. In this practice area, we have two areas of subspecialty:
On the plaintiffs' side, we typically represent individual investors. We usually take plaintiffs' cases on a contingent fee
basis, meaning that we are reimbursed for advanced expenses and disbursements we make on the plaintiff's behalf but otherwise
receive no compensation unless we win.
On the defendants' side, we have represented registered representatives (stockbrokers), financial advisors, introducing
broker-dealers, and clearing broker-dealers. We typically charge an hourly rate for this type of representation.
Malpractice
Some of our cases involve alleged “malpractice” by a financial professional. This arises in a number of forms.
Bad Advice and Poor Suitability
It’s the responsibility of a securities professional to know an investor’s financial situation, sophistication, and objectives,
and also to conduct a reasonable investigation of securities before making any recommendations to that investor.
When the professional makes a recommendation—either negligently or intentionally—that’s unsuitable for the investor, the
investor may have a claim. These cases come in a variety of forms, but they often involve trading on margin and investments in technology stocks,
junk bonds, unregistered securities, or illiquid limited partnerships.
Trading Problems
Sometimes securities professionals fail to trade at the best available prices or at an inopportune time. Most clearing broker disputes involve this
type of issue. These disputes are often caused by technology failure or poor operating procedures, but they can also be the result of intentional
misconduct. Either way, if the investor suffers financial injury as a result of the problem, he or she may have a claim.
Fraud
Fraud can involve both acts and omissions, because a securities professional is obligated to disclose to the investor "all material information
necessary to make the representations [he or she] made not misleading." If the professional does not comply, he or she may have committed securities
fraud. Here are some examples of securities fraud:
Scams
Sometimes fraud is flagrant. Corrupt financial professionals lure unsuspecting investors into so-called "Ponzi Schemes" where everyone appears
to get rich. These boiler room operations sell worthless penny stocks using aggressive cold call techniques that drive up prices. Then they sell their
shares at the top, causing the market for that stock to collapse.
Churning
Churning is a type of securities fraud that is a little more subtle. In churning cases, the broker may trade respectable securities, but he or she
trades them too often, for the purpose of generating commissions for himself rather than benefit for the client.
Unauthorized Trading
Sometimes, particularly when a customer won't trade as the broker suggests, the broker decides to trade without the client's permission. Needless to say,
this is improper; but it does happen.
Scams, churning, unauthorized trading—our lawyers have been litigating these types of cases for years. Rather than limit our representation solely
to plaintiffs or solely to defendants, we evaluate each case on its own merits from the perspective of that varied experience. Once we share our evaluation
and our proposed strategy with a client, we turn our attention to providing the client with responsible but zealous advocacy.