Are You An Investor Who Is A Victim of Unsuitability?

Are You An Investor Who Is A Victim of Unsuitable Investment Recommendations by Your Broker?

How Our Skilled Brokerage Firm Arbitration Lawyers Can Help

An unsuitable investment is one that is not appropriate for an investor and this can be for a number of many different reasons depending on the customer. The investment may be too risky for a conservative retiree resulting in serious investor losses. The same investment might not be risky enough for a sophisticated investor, losing them the opportunity to earn the income they might have otherwise if only their portfolio held more complex alternative investments.

A high-net-worth investor may suffer investment losses because their account was concentrated in too many illiquid complex products or was managed with too aggressive an investment strategy that wasn’t in line with their financial goals and needs. An investment might also prove unsuitable because it turned out to be fraudulent and the broker that recommended it failed to conduct the proper due diligence to make sure that the product was legitimate or ignored the red flags. These are just a few examples of the many different scenarios that can occur when unsuitability contributes to an investor losing money.

Shepherd Smith Edwards and Kantas ( represent retail investors, senior investors, retirees, accredited investors, high-net-worth investors, and institutional investors in their Financial Industry Regulatory Authority (FINRA) lawsuits against their broker-dealers and financial advisors. It is important to note that unsuitability is one of the most common grounds cited in brokerage firm arbitration claims by investors because, unfortunately, it occurs all too often.

What Are Some Other Reasons Why a Broker Might Engage in Unsuitability With a Customer?

  • Due diligence failures, whether it’s ignoring red flags indicating possible investor fraud or not looking closely at an investor’s profile to make sure the recommendation is the right fit for the client.
  • Broker inexperience, including lacking the proper training and/or not understanding the investment and its risks.
  • The lure of high commissions that they can earn from recommending certain risky products over safer, low-risk investments.
  • Their broker-dealer pressured them to sell a product to investors even when unsuitable for them.
  • Excessively trading, unauthorized trading, or overconcentration in an investor’s brokerage account.

As noted above, it isn’t just inexperienced and conservative investors that can fall victim to unsuitable investment recommendations. High-net-worth investors and institutional investors may also suffer significant losses because of it.  Determining whether a municipality, a small business, or an endowment fund has grounds for an unsuitability claim can be especially challenging, which is yet another reason why you want savvy unsuitability lawyers working with you.

How Can Our Seasoned FINRA Lawyers Help? 

For over three decades, Shepherd Smith Edwards, and Kantas have been fighting for investors like you in FINRA arbitration, mediation, and litigation. We have represented thousands of clients, more than 90% of whom have received a full or partial recovery. We have collected the equivalent of many millions of dollars in damages for our clients.

Our brokerage firm arbitration attorneys can help you determine whether your investor losses are due to unsuitability or some other type of broker misconduct or negligence. Should we agree to work together, we can prepare and file your FINRA lawsuit on your behalf. We will then represent you before the panel of arbitrators where we will fight for your financial recovery while protecting your legal rights.

With Shepherd Smith Edwards and Kantas, you are getting an entire team of experienced securities lawyers and legal support staff with over a century’s worth of combined experience in securities law and the securities industry. To schedule your free, no-obligation case assessment, call (800) 259-9010 today.


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