Upset with your financial advisor? Only if you believe that you’ve been defrauded should you consider a lawsuit-simply losing money isn’t enough. According to the National Association of Securities Dealers, the most common complaints against brokers and advisors are:
Misrepresentation. This is a falsehood or an omission of facts in relation to an investment. You might be told that a company has an exciting new product when that isn’t the case.
Unsuitability. This occurs when a financial advisor or broker invests a client’s money in a security that is not appropriate for that individual’s investment objectives. For example, it might be unsuitable for an advisor to recommend that a retiree on a fixed income put large sums of money into a small startup company.
Legal action also may be warranted in cases of churning–that could occur if a financial advisor leads you into an excessive amount of trading in order to increase the advisor’s commissions.
If you think you have been misled by your advisor or placed in unsuitable investments, contact your local bar association to get a few names of attorneys who represent plaintiffs in these types of cases. Meet with those attorneys to choose one with whom you’re comfortable.
