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How to Launch a Lawsuit Against Your Broker
How to Launch a Lawsuit Against Your Brokerling suit against your broker may be your last alternative and the least desired outcome but it is necessary in situations where fraud or gross misconduct is suspected. When investors believe that their portfolios have been mishandled, they need to use every possible tool available to remedy the situation as well as recover lost funds. Sometimes, talking to a senior employee at a brokerage firm is all that is necessary to bring about an amicable solution. Other times, hiring a lawyer and bringing forth a civil lawsuit is the most effective manner of shining a light on broker misconduct.
Confirming that Your Broker is at Fault
No party involved in investments wants to lose money, but that is the nature of the beast. Stock markets ebb and flow all day long. Some investment vehicles, such as ETFs, are touted as being safer and more stable, but no singular type of investment is immune to losing value. At the same time, brokers and brokerage firms have a duty to their clients, which includes performing due diligence and operating in an ethical manner. You can confirm that your broker is at fault if you cannot get clear answers for why your portfolio has suffered immense losses. Confirmation can also come in the form of lofty promises as well as being urged to invest even more money into what appears to be a sinking ship. When your gut tells you that your broker is not being forthright, that is reason enough to pull out and protect your financial future.Hiring the Right Brokerage Fraud Lawyer
When an investor has decided to launch a lawsuit against their broker an expert lawyer should be consulted at once. The law firm handling GBP arbitration claims is renowned in the industry for civil litigation against brokerage firms accusing of wrongdoing. The future of your legal case depends on who you retain as counsel. Meet with many attorneys, talk to investors you know and see if they can suggest any law firms, and take the time to know each attorney's history.Calculating Your Total Losses
In civil lawsuits, there are multiple types of losses. If you are planning to file a lawsuit against your broker and or the brokerage firm that handled your investments, an exact dollar amount must be calculated. Of course, it is up to the court to decide the case as well as any possible judgment, but heading off your case with a precise idea of your financial losses can only help to prove your position. There may also be fines, penalties, and punitive damages calculated and assessed. However, in the case of broker fraud, most investors should only pursue actual losses. You can speak to your chosen attorney more at length about what your total financial losses come out to be.
Filing a civil suit against your broker does not always mean that you will win, however, it does set a very important precedent. It tells the brokerage firm that you are serious about your claims. Filing a lawsuit also alerts other potential victims about what may turn out to be even further cases of widespread misconduct. Pursuing a case in civil court alerts the government of what is going on, gives you additional leverage and highlights all of the ways in which you have been wronged. When it is necessary to file suit against a broker, it is also time to hire the best attorney available.