At Bronstein, Gewirtz & Grossman, LLC, we represent investors who have lost large amounts of money because of irresponsible or unscrupulous brokers. Our lawyers bring arbitration claims against brokers before the National Association of Securities Dealers (NASD) or the New York Stock Exchange (NYSE), including churning (trading excessively to generate high commissions), unsuitability (putting client money in inappropriately risky investments), and fraud. We also handle arbitrations against stockbrokers or brokerage firms for handling investments in a careless or reckless manner. If you have lost money because of the inappropriate actions of your broker, you deserve to be compensated for your loss.
If you have any questions, or to speak with an attorney regarding your securities litigation or arbitration matter, please do not hesitate to call our New York City office at (212) 697-6484. If you prefer, you may e-mail us, or fill out the form on the Contact Us page of this website, and a representative from the firm will be in touch with you shortly. We look forward to speaking with you.
Securities Arbitration/Litigation - An Overview
During the boom years of the 1990's the stock market and its successes fueled an historic period of prosperity. Average Americans often got into the market via investments made through their retirement accounts. They watched their nest eggs grow with amazement. When the bubble burst, they watched with horror as their savings evaporated.
Of course, economic factors beyond anyone's control contributed to the market's decline. But, as the headlines show us, economics alone are not the only cause of some of the financial losses suffered by both individual and institutional investors. Admissions by companies like Enron, WorldCom, and ImClone, and allegations against individuals like Jack Grubman indicate that corporate and individual wrong doings contributed to the losses suffered.
To operate as intended, the financial market requires full and fair disclosure relating to corporate operations, financials and all transactions conducted in it. Complex federal laws and regulations, as well as related state laws govern all aspects of the issuance, sale and purchase of stocks and other securities. When federal and state laws and regulations are violated and investors suffer financial losses, they may be able to bring securities arbitration or litigation.
Read More
The ABC's of Securities Arbitration/Litigation Claims
When wrongdoing beyond market forces cause investment losses, investors have a wide variety of claims they may assert. Understanding what conduct supports a legal claim will help you protect yourself from abuses in the future and identify actionable conduct if and when it occurs. If you recognize any of the following scenarios in relation to your own investments, you should contact an attorney with experience handling securities arbitration or litigation claims to discuss your situation.
Breach of Fiduciary Duty
This claim comes from common law as opposed to a specific statute. Brokers occupy positions of trust and confidence with their customers; therefore they owe them the duty of loyalty and fidelity. Investment activity that violates that duty may entitle you to bring a breach of fiduciary duty claim.
Conflict Of Interest
Conflict of interest claims have recently received a great deal of media attention. They may occur when a large securities firm conducts both investment banking activities and stock analysis and brokerage. Securities analysts may be tempted or persuaded to give a particular stock a strong evaluation if the company is a client on the investment banking side of the business. Similarly, lower ratings may be given to competitors of clients. In either event, investor losses linked to this conduct have the potential for recovery under a conflict of interest theory.
Read More
Understanding Securities Arbitration
You may find yourself in arbitration for recovery of investment losses caused by stockbroker or brokerage firm misconduct. Arbitration is an alternative dispute resolution process. Instead of a judge and jury, a panel of one to three impartial people hears the evidence and reaches a decision regarding your claim for losses. Arbitration of securities related claims has dramatically increased since a United States Supreme Court decision in 1987 cleared the way for industry drafted arbitration agreements. If it appears that your investment losses are putting you on the road to arbitration, it makes sense for you to contact an attorney with experience handling securities claims.
Read More
Locking the Barn Door: New Legal Requirements after Enron
Following the Enron scandal and the revelation of financial wrongdoings by other companies, Congress passed the Sarbanes-Oxley Act of 2002. The law provides sweeping changes to the oversight of the public accounting industry, increases corporate governance and disclosure standards for public companies, and increases the penalties for those that violate the securities laws.
The Act is designed to prevent the use of deceptive practices in management and accounting.
Read More
Proving Securities Fraud
As an investor, it is often difficult to determine whether you have been victim of investment or securities fraud. Many instances of securities fraud go undetected. Most investors will not even consider the possibility of misconduct until they are faced with the loss of their investment. Because the market naturally fluctuates, not every loss means you have been the victim of fraud. However, big losses should spark your concern and prompt you to undertake a further investigation. It may be difficult or nearly impossible to detect fraud unless you consult with a professional who knows what types of suspicious activity to look for.
Read More
Securities Arbitration/Litigation Resource Links
NASDAQ
World's largest electronic stock market.
Securities and Exchange Commission
The primary mission of the U.S. Securities and Exchange Commission (SEC) is to protect investors and maintain the integrity of the securities markets.
EDGAR (database of SEC filings)
All companies, foreign and domestic, are required to file registration statements, periodic reports, and other forms electronically through EDGAR. Here you'll find links to a complete list of filings available through EDGAR and instructions for searching the EDGAR database.
Read More
