The founding attorneys of CMF spent the majority of their careers at large New York defense firms, representing brokers and broker-dealers in securities litigation, arbitration, administrative and regulatory proceedings before FINRA and the U.S. Securities & Exchange Commission. Having extensive experience working on both sides of the fence, we have a unique understanding of the complexities of securities arbitration, mediation, regulation and litigation. Because CMF represents both plaintiffs and claimants in civil matters, and defendants and respondents in administrative and regulatory matters, we are familiar with all of the relevant legal arguments.
Types of claims
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Often the misrepresentations or omissions disguise the risk associated with a particular investment. A broker has a duty to fairly disclose all of the risks associated with an investment. A brokerage firm or broker can be held liable if that firm or broker misrepresents material facts or omits to disclose material facts to the investor regarding an investment, and that client subsequently loses money on that investment.
There are two types of misrepresentations and omissions; those that are fraudulent and those that are negligent. If the misrepresentation was not intentional a negligence claim is more appropriate.
According to the SEC anti-fraud regulations, an investor who lost money may recover damages by proving the investment recommendations made:
- was based on a misrepresentation or omission of a material fact;
- was intentional, reckless;
- was in connection with the purchase or sale of a security;
- was relied upon by investors; and
- resulted in an investment loss.