Securities Arbitration
Most brokerage and investment advisory firms require clients to sign account agreements containing mandatory arbitration provisions. These provisions typically require disputes to be resolved through arbitration rather than in court, meaning investors seeking to recover financial losses are often limited to pursuing their claims before organizations such as FINRA, JAMS, the American Arbitration Association (AAA), or other arbitration forums.
Successfully navigating securities arbitration requires experience and a thorough understanding of the rules governing each forum. The attorneys at Cosgrove Simpson have extensive experience representing investors in arbitration proceedings and have successfully challenged the enforceability of arbitration provisions when appropriate. We work diligently representing our clients and pursuing the compensation they deserve.
Breach of Fiduciary Duty
A fiduciary is someone who has a legal obligation to act in another person's best interests. This duty requires the highest level of honesty, loyalty, good faith, and full disclosure. Fiduciaries must always place their clients' interests above their own and avoid conflicts between personal interests and professional responsibilities.
Financial advisers and other financial professionals are often fiduciaries under the law. When they fail to uphold these obligations, the consequences can be financially devastating to their clients.
Cosgrove Simpson regularly represents clients whose financial well-being has been harmed by breaches of fiduciary duty. If you believe a trusted financial professional has failed to act in your best interests, our attorneys can evaluate your claim and help you pursue the appropriate legal remedies.
Unsuitable Investment Recommendations
Brokers and other financial professionals have a duty to understand their clients' financial circumstances, investment objectives, and tolerance for risk before recommending an investment strategy. Recommendations should align with a client's financial goals, experience, liquidity needs, and ability to withstand potential losses.
An investment may be unsuitable if, for example:
- It exceeds the client's risk tolerance.
- The client cannot reasonably afford the potential losses.
- It does not align with the client's financial objectives.
- The risks were not adequately explained before the investment was made.
Our attorneys have extensive experience handling unsuitable investment claims and are committed to helping investors recover losses caused by inappropriate recommendations.
Failure to Supervise
Brokerage firms and Registered Investment Advisors have a legal obligation to establish and enforce supervisory systems designed to monitor the conduct of their registered representatives. When a broker engages in misconduct, the brokerage firm may also be held responsible if it failed to implement or enforce adequate supervisory procedures.
The attorneys at Cosgrove Simpson understand the complex regulatory framework governing supervisory responsibilities and have experience representing clients in claims involving failures to supervise.
Churning
Churning occurs when a broker excessively buys and sells securities in a client's account primarily to generate commissions rather than to benefit the client.
Brokers who engage in churning often justify frequent trading by promising short-term gains or presenting unnecessary transactions as sound investment strategies. In reality, the excessive trading benefits the broker while exposing the investor to unnecessary costs and risk.
With years of securities industry experience, the attorneys at Cosgrove Simpson know how to evaluate a churning claim. If you believe your account has been excessively traded, we encourage you to contact us for an evaluation.
Misrepresentations and Omissions
Financial advisers and brokers have a duty to provide investors with complete and accurate information about recommended investments, including the material risks involved.
When an adviser or broker misrepresents important facts—or fails to disclose information that a reasonable investor would consider significant—clients may make investment decisions they otherwise would not have made. If those omissions or misrepresentations result in financial losses, the adviser or broker may be held legally responsible.
Cosgrove Simpson represents investors who have suffered significant losses due to misleading statements, incomplete disclosures, or other deceptive practices by financial professionals.
Annuity Fraud
Annuity fraud occurs when an insurance agent or financial professional misrepresents an annuity, conceals important information, or otherwise induces an investor to purchase an unsuitable or inappropriate product.
Depending on the circumstances, victims of annuity fraud may be entitled to rescind the transaction, recover their investment, and, in some cases, seek additional damages.
David B. Cosgrove has authored articles on annuity-related issues and has successfully represented both investors and financial professionals in annuity litigation. If you believe you have been the victim of annuity fraud—or have been accused of wrongdoing involving an annuity—our experienced attorneys are prepared to help.