Negligence
Stockbrokers and advisers owe certain duties to clients. Some breaches of the duty owed to a customer could give rise to claims of negligence. Stockbroker negligence occurs when a broker or investment advisor’s conduct falls below the established industry standards designed to protect investors from an unreasonable risk of harm. When asserting a negligence cause of action against a broker-dealer or broker, the customer generally must establish four elements:
- The firm or broker owed a duty to the customer;
- The firm or broker breached that duty;
- The firm or broker’s breach caused injury to the customer; and
- The customer was harmed or injured as a result of that breach.
Typically, brokers and advisers owe a duty of care, duty of loyalty and duty of good faith and fair dealing in connection with the customer’s investment portfolio and account. Investment advisers, and in certain circumstances brokers, owe a fiduciary duty to customers. Examples of broker negligence can occur when a broker fails to properly diversify a portfolio, and instead over concentrates a customer’s account in one particular stock. In other circumstances, a stockbroker can be negligent by recommending unsuitable investments or a investment product to their client. If it is determined that a broker breached the duties it owes to customers, which results in injury or damages to the customer, the broker may be liable for losses and/or damages to that customer.
Broker-dealers or investment firms can also be found negligent. For instance, when a firm fails to implement adequate compliance or supervisory policies, procedures and systems, the firm may be found liable for negligence if their registered representatives and brokers are found to have violated securities laws, regulations and/or the firm’s policies and procedures.
Stockbroker negligence can lead to significant damages or losses to a customer’s investment portfolio. Our team at Lax & Neville LLP has experience prosecuting claims for victims of stockbroker negligence. While every case is different, we are proud to share our past significant wins with you. If you have any further questions regarding stockbroker negligence, contact Lax & Neville LLP today and schedule a consultation.
Client Reviews
★★★★★
The Lax & Neville team were total professionals in handling our case. They've clearly had quite a bit of experience handling complex legal matters in many jurisdictions and courts. I was impressed with their professionalism coupled with persistence in arguing a very complete and well-structured case. I highly recommend their services. Anonymous
★★★★★
I am very, very happy with the outcome of my case and my experience with Lax Neville could not have been better. The entire team of attorneys and staff are real professionals, they always had time to answer my many questions about my case. I was treated with compassion and respect. I am so grateful I chose to work with Lax Neville. Anonymous
★★★★★
This is an official " thank you" for all your hard work. It really was a pleasure to have you represent me, and I enjoyed seeing you, Rush and Sandra in action. I think Lax and Neville epitomizes the phrase "quality vs quantity". I think I told you before that I spent a lot of time researching firms; in this case things worked out, I picked the best firm. I hope I never need your services in the future, but if I do I know I found the best attorneys for these types of legal issues. Anonymous
★★★★★
What transpired at the [redacted] was nothing less than a truly masterful and exceptional experience regarding your intelligence, professionalism, preparedness for my case, teamwork and erudite knowledge pertaining to Securities Law, FINRA and the SEC. The facility and ease of how the case was handled, the systematic questioning of all the witnesses to obtain the facts necessary to prove our case, the preparation of the critically conclusive information and documents, the commanding coup de gras closing argument and your tireless consideration and respect for the Panel and [redacted] was, is and will continue to epitomize my feelings and conclusion that what transpired over those long three days was nothing less than raw and unabashed brilliance. Anonymous