Justia Lawyer Rating
Super Lawyers - Rising Stars Kirk G. Smith
Super Lawyers Samuel B. Edwards
Super Lawyers William S. Shephard
Texas Bar Today Top 10 Blog Post
Avvo Rating. Samuel Edwards. Top Attorney
Lawyers Of Distinction 2018

Financial Product Failures

What Happens When a Financial Product Fails?

Shepherd Smith Edwards and Kantas represent investors throughout the United States who have suffered losses because a broker or investment advisor marketed and sold them a financial product that failed or was never suitable for their portfolio, investing goals, or risk tolerance level.

In some cases, a financial or investment product failed because it was part of a Ponzi scam or another type of securities fraud and the broker-dealer did not perform the proper due diligence to make sure the investment was legitimate.

Whatever the reason, if your investment has plunged drastically in value, was a poorly constructed financial product, or proved fraudulent, you may have grounds for a Financial Industry Regulatory Authority (FINRA) arbitration case against your stockbroker or their firm to recover your losses and other damages.

Over the last 30 years, our seasoned stockbroker and investment fraud attorneys have represented thousands of investors, and we have recovered many millions of dollars on our clients’ behalf. Even if your financial advisor claims that market volatility or adverse events, such as COVID-19, are to blame for your investment failing, you still may be able to hold them accountable for the harm that you have suffered. Contact us online or call (800) 259-9010 for your free, no-obligation case consultation.

List of Financial Product Failures That SSEK Law Firm is Investigating

Below is a list of some of the many investment products that our securities fraud law firm is currently investigating.

Did your stockbroker or financial advisor promise you a sound investment, providing reasonable returns with little or no risk?

Wall Street creates products with the primary goal of generating fees for themselves. They then use their sales force to market these products to an unwitting public. Often, the investment advisor has no idea how risky and conflicted these products are while zealously marketing them.

Sometimes these products are just bad investments. In other cases, the stockbroker or investment advisor overconcentrates clients in proprietary products that pay handsome fees and commissions. Although it’s understood that financial products generally have some risk involved, usually the risks are downplayed to the consumer in order to make the sale.

Conservative and inexperienced investors are more likely to suffer huge losses than sophisticated investors when high risk or illiquid securities fail. That said, high net wealth individual investors and institutional investors are not immune to being misled and suffering huge losses. That is why it is important that you work with a broker who knows what they are doing and isn’t overconcentrating your portfolio in too much of one investment or using an investment strategy that is too aggressive for you.

Signs That the Financial Product You Invested in May Be in Trouble

Yet, how exactly can you know, as an investor, whether or not the securities you invested in is beginning to fail? These are some of the signs that you should be aware of:

  • Your broker or investment advisor sets a new benchmark because an investment that you purchased did not perform as promised.
  • Withdrawals and redemptions from a particular investment begin to take longer than usual or were suspended completely, making it impossible for you to access your funds.
  • The company that issued the investment stops sending you financial statements or continues to delay disclosure of its quarterly financial results.
  • Your portfolio takes a huge hit because your investment advisor or broker heavily invested your account in highly volatile or high-risk financial products.

Often, a stockbroker or investment advisor’s negligent or reckless actions can cause your portfolio to fail. Churning, unsuitability, selling away, and broker misconduct are just some of the common reasons why investors lose money.

However, over the past decade, financial products have led to massive investor losses. Furthermore, brokerage firms have been guilty of inadequate supervision of its agents because they are the ones pushing the broker to sell these products. Such actions can be fraudulent or at the very least, negligent, and generally, these firms can be held liable if losses occurred.

Financial Product Failure: Why Work with a Skilled Securities Arbitration and Litigation Law Firm?

Our team of experienced investment fraud attorneys, consultants, and staff have over 100 years of combined legal experience in securities law and the securities industry. We have successfully fought for investors in arbitration, litigation, and mediation.

Contact SSEK Law Firm today and request your free, no-obligation case assessment.

Client Reviews
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"I am going to miss conversations with you, Sam Edwards. You’ve been a wonderful lawyer and a friend. I loved learning legal jargon from you. But, even more, it is your self respect and commitment to your position that I admire and your persistent patience-your equanimity. With great appreciation, thank you!" M.B.
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"I want you to know that I very much appreciate your expertise, hard work and guidance that led to a satisfactory resolution with Raymond James. From our first meeting, I felt "heard" and that my situation and story were respected. Every subsequent interaction I had with any of you - in person, via email or by phone - only corroborated that feeling. What great work you do on behalf of people like me who have been wronged, yet don't know how to navigate the appeals/mediation/arbitration process as you do. I will be forever grateful." M.L.
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Fill out the contact form or call us at (800) 259-9010 to schedule your free consultation.