Securities lawyers practice law in a specialized United States legal system area. Securities attorneys deal with matters that fall under the purview of federal agencies such as the Securities and Exchange Commission, which administers arguably the most robust investment-related laws in the world. Suppose you have suffered financial losses because of the negligent or fraudulent actions of a broker or financial professional. In that case, you may have the right to recover damages through FINRA arbitration or state court litigation.
Dispute Resolution
A securities attorney is often needed when an investor has suffered significant investment losses due to negligence or misconduct by a stock broker or financial firm. Securities attorneys investigate brokerage firms and financial advisors for misconduct or breach of fiduciary duty. They are familiar with the Securities and Exchange Commission’s regulations, state blue sky laws, and Financial Industry Regulatory Authority rules that regulate broker-dealers and their clients. They can help investors pursue recovery for their damages and protect their legal rights against further wrongdoing by brokers or firms. In addition to representing individuals in disputes with brokers and investment advisors, securities lawyers also handle regulatory matters on a large scale for publicly traded corporations. These include issues surrounding initial public offerings and private sales of securities, as well as compliance with the securities laws and regulations that are constantly changing. For individual investors, the best way to find a securities lawyer is by asking for referrals from other investors who have had similar experiences and doing online research. It is essential to choose a bar-associated lawyer with experience handling securities litigation—a smart choice for a lawyer with a history of success for their clients. The experienced securities lawyer in New York will fight for your right to recover damages from any investment losses caused by broker misconduct or fraud.
Arbitration
Many broker-dealers include arbitration clauses in their terms of service contracts. It means that when you lose money due to the negligence or unethical conduct of a financial advisor, brokerage firm, or investment banker, you may only be able to pursue legal action in a FINRA or Securities and Exchange Commission-led dispute resolution forum. Securities attorneys can help you determine whether a civil lawsuit or arbitration is your best option and guide you through recovering losses for the loss of your investments. Securities lawyers also assist broker-dealers and investment advisory firms in defending claims by customers or the governmental authorities against them. Your firm could face allegations of unsuitable trading recommendations, churning, excessive or unauthorized trading, fraud, failure to supervise, unauthorized account access, broker theft, and more. Finally, securities lawyers can work with companies seeking to raise capital in the IPO market and help them comply with securities laws. For example, they can advise on filings with the SEC and assist them in drafting corporate disclosure documents to protect investors. Similarly, they can advise startups on how to comply with securities laws and aid them in raising the necessary capital to grow their business.
Class Actions
A securities attorney can help individual investors who lost money because of fraud or negligence by their investment advisor or broker. These cases are generally handled through arbitration rather than civil lawsuits. Most brokerage firms require that their customers sign an agreement requiring arbitration in a dispute. It is a mandatory dispute resolution forum offered by the Financial Industry Regulatory Authority (FINRA). Securities attorneys can represent clients in these cases and help them obtain financial compensation for their losses. They may also file a complaint with the SEC or other securities regulators or assist in a class action against a brokerage firm or individual investor. Existing securities law doctrine struggles to balance the interests of allowing meritorious securities lawsuits to proceed and deterring frivolous ones. The judges deciding whether to allow a class action to move often need more information and expertise to screen out such suits, leading to false positives and negatives. An experienced securities attorney can help investors identify if they have a claim by reviewing their account statements, communications with their advisers, and other evidence. They can also explain the difference between a legitimate claim for lost investments and one based on a misunderstanding or miscommunication. They can assist clients in determining whether their advisor or broker was negligent, fraudulent, or unintentionally careless and then advise them on pursuing their claims.
Legal Fees
Most broker-dealers require their customers to sign arbitration agreements, which eliminates the ability for clients to bring a claim to court. Instead, the disputes are handled in FINRA arbitrations by securities attorneys who work for brokerage firms. These lawyers have extensive experience bringing customer claims against brokers and their employers for misconduct, including unsuitable security recommendations, excessive or unauthorized trading, failure to diversify an investor’s portfolio, stock manipulation, front running, insider trading, and mishandling margin calls. If you’ve been the victim of a broker violating federal securities laws, you may be entitled to recover an award from the SEC Whistleblower Program. Your securities attorney will evaluate your case, help you determine the best way to proceed, and defend you against any retaliatory action by your employer.
A securities lawyer can also help a public or private company raise capital by advising them on regulations for offering their securities, preparing disclosure documents, and assisting with filing with the SEC. They may also counsel companies that are considering a merger or acquisition. A good securities lawyer will be experienced in handling the complexity of these transactions and offer a variety of billing arrangements that are fair to both parties. These include hourly fees, hybrid fees (a mix between an hourly rate and a contingency fee), and flat fees.