A quick guide to help you figure out if you can pursue your broker for securities losses.
1
Can you sue yoru broker?
Yes, you (or any investor) can file an arbitration claim against your stockbroker, brokerage firm, or other investment professional for stock fraud, bad investment advice, risky investments, or a host of other claims.
2
How do I file an arbitration claim?
Virtually all claims against stockbrokers will be handled through the FINRA Arbitration and Mediation program. You should find an attorney who is familiar with the securities industry and who you can get along with. A good source for attorneys who focus on securities losses and securities fraud issues is PIABA.org. PIABA is a plaintiff's bar association of lawyers around the country who represent individuals who have been harmed by their stockbrokers.
3
How Much Does it Cost to Arbitrate?
The filing fees are on a sliding scale depending on the amount of losses claimed, whether an injunction or punitive damages is requested, etc. In general the filing fee will be between $500 and $1,800. Other costs include expert witnesses, photocopies, forum fees paid to FINRA and of course the attorney's fee which is typically a contingent fee agreement ranging from 33$ to 40%.
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