Representing Texas Investors Whose Brokers Gave Them Inaccurate, False, or Incomplete Facts and Information About An Investment or Strategy
Shepherd Smith Edwards and Kantas (investorlawyers.com) works with Lone Star State investors who have suffered losses due to misrepresentations and omissions made by their financial advisor. Contact our Dallas securities law firm today if you are an investor who would like to explore your legal options.
How Can Misrepresentations and Omissions Lead To Losses for Investors in Texas?
A broker-dealer or financial advisor that purposely inaccurately misrepresents or leaves out material information about a particular investment or strategy—whether it’s the risks involved, the high commissions charged, or other key facts—is committing misrepresentations and omissions.
When a stockbroker minimises risks, exaggerates returns, or hides conflicts of interest, investors can later end up blindsided to learn that what they were led to believe was a safe investment has ended up costing them serious losses—or, in some cases, what they thought were returns were inflated or bogus numbers. These are just a couple of examples of what can happen when a financial advisor makes fraudulent misrepresentations and omissions.
However, deliberate intent doesn’t have to be involved. Negligence, financial advisor inexperience, or due diligence failures can also lead to misrepresentations and omissions.
What Are FINRA’s Rules Regarding Misrepresentations and Omissions?
Rule 2020 Use of Manipulative, Deceptive or Other Fraudulent Devices: : Brokers are not allowed to engage in fraudulent, manipulative or deceptive practices when selling securities.
Rule 2210 Communications with the Public: Making and providing forecasts about investment returns is not allowed.
Rule 2010 Standards of Commercial Honors and Principles of Trade: Member firms and their registered representatives must honour these principles and standards in their business practices.
Rule 2150 Improper Use of Customers’ Securities or Funds; Prohibition Against Guarantees and Sharing in Accounts: Making guarantees that no losses can arise is not allowed.
Rule 2240: Conflicts of Interest: Deals with the matter of conflicts that can pose a risk or harm to customers.
I’m A Texas Investor. What Should I Do If I Suspect Misrepresentations and Omissions Contributed to My Portfolio Losses?
Our Dallas misrepresentations and omissions attorneys can’t tell you how many times we have been approached by retail investors and elderly retirees claiming that they had no idea their broker had involved them in risky alternative investments when, in fact, they should never have been exposed to this type of illiquid, non-transparent or even volatile product. Our securities firm has represented wealthy investors who were never told by their broker-dealer how much they could lose if they opted to borrow on margin.
Proving that your portfolio losses were caused, even if just in part by misrepresentations and omissions can be challenging, which is why you want to work with seasoned Dallas misrepresentations and omission lawyers who know how to prove you are entitled to damages.
Over the decades, Shepherd Smith Edwards and Kantas has represented many Texas securities cases against brokerage firms located in the state, regional broker-dealers, and the largest Wall Street firms. If you suspect that you were the victim of misrepresentations and omissions involving your financial advisor, contact our Dallas securities law firm today so that we can help you determine whether you have grounds for a claim against your broker-dealer and their financial advisor.
Contact Our Dallas Misrepresentations and Omissions Law Firm
Misrepresentations and omissions can compel an investor to agree to an investment or strategy that they wouldn’t have approved otherwise if only they had all of the facts and understood them. It is one of the most common legal reasons that investors end up losing money and filing a claim for damages in Financial Industry Regulatory Authority (FINRA) arbitration.
Call (214) 613-5306 or (800) 259-9010
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900 Jackson St #440-A
Dallas, TX 75202
*Because we work on a contingency basis, we are only paid for our securities law services if we secure an award or settlement in your Dallas securities misrepresentations case.