Financial Product Failure Law Firm

Representing Investors Whose Financial Advisors Sold Them Investments That Caused Them Serious Portfolio Losses

The Shepherd Smith Edwards and Kantas Financial Product Failure Law Firm (investorlawyers.com) represents Texas investors who suffered losses because a financial product sold to them by their broker or investment adviser failed. Contact our Houston securities law office today to schedule your free case consultation.

Why Does A Financial Product Fail?

There are many reasons why a financial product might fail. No matter the investment, there is never a guarantee of success or profit. If someone is marketing a stock, bond, alternative investment, or even a specific kind of fund to you and claims that you are taking on absolutely no risk, please run the other way.

Some examples of why financial products fail:

There is a change in the business model. This can affect stock valuation. There may be post-merger performance issues, overvalued stock, integration risks and conflicts, acquired debt, tax implications, and other problems.
Share prices plunge due to adverse events. That is what happened to the commercial real estate market and the oil and gas industry during the COVID 19 pandemic. Even when there is no crisis, market prices can go up and down due to fluctuations and volatility.
Money problems are affecting the investment vehicle. This can lead to returns, redemptions, and offerings being suspended.
Poor management affecting the financial product, including those involving undisclosed conflict of interest.
Some type of investment fraud was involved, such as Ponzi scams, affinity schemes, pump-and-dump fraud, penny stock scams, and more.
A substantial drop in an investment’s price or even a total investment failure. Ofte,n there were likely red flags leading to this point.
The financial product was poorly structured.

Broker-dealers are required to conduct the necessary due diligence before recommending any financial product to a customer. They also must look out for warnings indicating whether there are signs of suspect activity or fraud, as well as whether an investment looks like it is about to fail. Recommending a fraudulent or failing product is an unsuitable investment recommendation and can be grounds for a stockbroker negligence claim for damages. Brokerage firms that fail to properly supervise their registered representatives who make bad recommendations can be held liable for product losses.

I’m A Houston Investor. What should I do if I suffer losses in a Failed Product Loss?

It is important that you explore your legal options with our seasoned Financial Product Failure Law Firm. Do NOT try to resolve this dispute with your broker-dealer without talking to us first. Often, brokerage firms will try to deny wrongdoing, perhaps even blame you or someone or something else, for what happened, rather than admit they had any fault in causing you to lose money. Approaching them on your own could sabotage your chances of filing a legitimate case.

Just because your financial advisor didn’t cause the financial product to fail doesn’t mean they shouldn’t be held liable for unsuitability, due diligence failures, breach of fiduciary duty, selling away, overconcentration in your account, or making misrepresentations and omissions about the risks. Unfortunately, there are brokers out there who will ignore warning signs that an investment is in trouble and continue to solicit the financial product to customers because of the high commissions and fees that they can earn. This is a disregard of their clients’ best interests.

Contact Our Financial Product Failure Law Firm in Houston

Your financial product failure claim will likely be made in FINRA arbitration. Over the years, the Financial Product Failure Law Firm of Shepherd Smith Edwards and Kantas has represented many investors in this legal forum. This is not the same as going to court. You want to work with skilled Houston investment loss recovery attorneys who have the experience and resources to maximize your chances for a full recovery. Because we work on a contingency basis, should we agree to work together, you will only pay us for our legal services if we secure an award or settlement for you.

To schedule your free, no obligation case assessment call, (936) 251-0033 or (800) 259-9010, or fill out this online contact form.

1010 Lamar St #900
Houston, TX 77002