Securities and stock issues
Protection of South Florida Investors
Securities and Exchange Commission (SEC) regulations and other federal and state laws govern stock investments and trades. The corporations that release stocks to investors, directors who sit on the corporation’s board and brokers who trade the stocks must abide by the complex regulations in all of their dealings.
The Law Office of Geoffrey D. Ittleman, P.A. prosecutes and defends claims involving stockbroker manipulation, broker liability, erroneous investment advice, breach of fiduciary duty and securities fraud. Based in Ft. Lauderdale, our lawyers handle claims involving South Florida businesses, brokerage firms and stockholders. If you are an investor, we protect your right to fair dealings in the market. We also protect companies, boards and stockbrokers from unfair accusations of wrongdoing.
Investors lose when brokers do not play by the rules. For this reason, many forms of stock manipulation are illegal, including:
- Spreading false information to drive a company’s stock price up or down
- Improperly restricting the number of public shares available on the market
- Creating a deceptive perception of demand by rigging stock quotes, prices or trades
- Engaging in insider trading that gives certain investors an unfair advantage
Companies that engage in these activities are subject to criminal and civil penalties. If you are a stockholder in the company, you also may have a cause of action to recover money you lost because of the broker’s unlawful manipulation.
Broker Liability and Erroneous Investment Advice
You expect your broker to deliver well-informed, honest advice about your investments. Your brokerage firm must abide by important fiduciary duties to act in your best interests and may be held liable for:
- Breach of fiduciary of duty: Acting in a manner inconsistent with your best interests, which often involves actions intended to benefit the broker himself or to advantage another party.
- Churning: Trading for the primary purpose of earning brokers fees and commissions.
- Fraudulent misrepresentation: Misrepresenting or omitting material facts relevant to your investments.
- Unsuitable trades: Failing to consider such factors as your financial situation, your investment goals and your level of investment sophistication to appropriately analyze your risk tolerance for certain trades.
- Vicarious liability: Failing to supervise the individual broker who is making your trades.
Breach of Board of Director’s Fiduciary Duties
The board of directors must abide by fiduciary obligations to the stockholders of the company. Although individual directors may be immune to liability, you may have a cause of action against the company or against directors who act with gross negligence or fraud in conducting mergers, acquisitions or other deals that benefit the directors at the expense of the stockholders.
Protect Your Investments
The Law Office of Geoffrey D. Ittleman, P.A. represents company stakeholders, including stockholders, investors, boards of directors, companies and stockbrokers. Call our securities lawyers at (954) 462-8340 for assistance with your disputes. Your claims evaluation is free.