Attorneys Helping Clients Recover Investment Losses
Investment losses can hurt almost as severely as physical injuries. This is because investment losses, particularly in retirement or the years immediately preceding retirement, can be life-altering.
For years, you diligently saved money for the future. You were willing to accept some risks so that your portfolio would have a chance to grow, but you told your investment adviser that your risk tolerance was low. You explained that you were a conservative investor. Then, one day, you open your account statement and see losses.
These are not ordinary investment losses – the type you’ve seen everyone experience once in a while as the market has fluctuated. These are significant losses you did not expect and had no reason to anticipate. You take a closer look, and the numbers don’t add up. You were told that your investments were safe, but now large amounts of your money are gone and you want to know why. We can help.
At DLM LAW LLC in Kansas City, our lawyers help clients recover investment losses. Whether your situation involves churning, suitability, unauthorized trading, failure to execute, improper use of leverage or margin, overconcentration, negligence or fraud, you need an experienced investment loss attorney to discuss your issues and identify and assess possible strategies for obtaining a successful outcome and recovering your investment losses.
Bringing Suitability Claims Against Financial Advisers
Every investment recommendation made to an investor by a financial adviser must be “suitable” based on the investor’s risk tolerance, objectives for investing, financial status and other relevant factors. An investment recommendation may not be suitable if it does not line up with the investor’s investment goals, if the investor cannot tolerate the risk involved in the investment, or if the investor didn’t realize the risk that the investment would entail.
About Overconcentration Claims
Overconcentration claims are actionable when an investor, at the recommendation of a financial adviser, maintains a portfolio that is overconcentrated in a single issuer and/or asset class. An adviser who fails to diversify a customer’s account may be liable should the investment decline in value.
Improper Use Of Margin Accounts
An investor may leverage their assets through an account made up of margin funds held by a financial institution. Using this strategy, the investor can purchase securities with borrowed money. The loan originating with the institution is guaranteed by securities from that account. Investors who buy and sell securities using margin funds of this type are susceptible to losses as well as to “margin calls” in which representatives of institutions demand that they deposit additional money or securities into their margin accounts.
The institution can make it necessary for you to sell securities in such an account and may sell off some of your securities even without your knowledge or approval. As a result, financial advisers have a duty to explain to their customers the extra risks that come with trading on margin.
Churning Investment Activity For Profit
Churning happens when a financial adviser trades excessively from an investor’s account with the express purpose of making commissions. Evidence of excessive trading in the account can come to light through analysis to determine whether it meets certain threshold calculations. An investor may have a case against a financial adviser by proving that the adviser had control over decisions made for the account, that the trading was of inappropriately high volume and that the financial adviser recklessly disregarded the investor’s interests.
Misrepresenting And Omitting Important Facts
Both federally and at the state levels, laws prohibit financial advisers from making “material misrepresentations” about any investments that those finance professionals persuade customers to make. By law, financial advisers and institutions are obliged not to leave out information that an investor would reasonably need and desire to know before deciding how to invest. Such advisers and institutions may be considered liable if they misrepresent facts or do not disclose key facts when selling or recommending investments to investors.
Get Legal Advice Now
If any of the above applies to your situation, we urge you to get in touch with one of our experienced investment loss attorneys based in Kansas City, Missouri. Call 816-285-3888 or email us to schedule a free consultation with a lawyer well-versed in the legal remedies available for investors who suffered investment losses. If you lost significant money from your investments, we are here to help.