Pump-and-Dump Scam

To All Webull Financial Customers Who Suffered Losses In The Alleged Third Party Pump-and-Dump Explore Your Legal Options With Our Securities Law Firm Today

Shepherd Smith Edwards and Kantas (investorlawyers.com) is continuing to investigate claims of losses by Webull Financial customers whose accounts may have been breached by a third-party in an alleged pump-and-dump scam. Already, we are representing a number of these Claimants in their investment loss recovery claims against this broker-dealer for failing to stop this breach.

These Webull customers allege that an unauthorized third party was able to break through the brokerage firm’s security measures and access these investors’ accounts. The scammers purportedly liquidated these customers’ investment holdings and used the funds to buy penny stock shares of Ten-League International Holdings (TLIH). This artificially inflated the price of those shares. The unknown party is believed to have sold their shares at that higher price. When the stock’s price dropped, the Webull Financial customers sustained serious losses.

Deliberate attempts to “pump” a stock’s price and then “dump” it at that higher price is known as a pump-and-dump scam. Once demand for the inflated stock hits critical demand, fraudsters will then sell their shares and make a profit because of the raised price. Their subsequent cessation of efforts to increase the demand and sale of the stock usually causes the share price to drop. Once the price has gone down, the other investors who bought the stock at the inflated price end up losing money.

Webull Financial customers who suffered losses in this alleged fraud will likely have to pay tax bills for any short- and long-term capital gains they made as a result.

What Has Webull Financial Said About The Alleged Pump-and-Dump Scam?

The broker-dealer has not admitted to any wrongdoing or negligence. Instead, Webull Financial issued a form letter to customers claiming that their money was lost because of a phishing scam. Seeing as brokerage firms, including those with online brokerage platforms, have a duty to properly supervise activities in customers’ accounts and ensure that the necessary security measures are in place to prevent third-party breaches, this letter appears to be a way to deny liability.

In the investor lawsuits against Webull that we have filed in FINRA arbitration, the allegations our clients are making include gross negligence, supervisory failures, breach of contract, negligence, breach of fiduciary duty, unjust enrichment, violation of California’s elder abuse statute, and more.

How Can Shepherd Smith Edwards and Kantas Help If You Suffered Losses in Your Webull Financial Account Caused By a Third Party?

For decades, our seasoned securities lawyers have been fighting for investors in recouping their losses caused or enabled by broker-dealers and investment advisers. During your free case consultation, we can determine whether you have grounds for pursuing damages from your financial advisor and their firm.

We have the skills, experience, and knowledge required to maximize an investor’s chances for full financial recovery. If we decide to work together, you will become part of our unit of FINRA lawsuits against Webull Financial over this alleged pump-and-dump breach. Everyone at our firm will be representing you.

Call (800) 259-9010 or fill out this online form to contact us today.