Misrepresentations and Omissions

Brokers Must Be Forthcoming with Factual Information

Brokers’ relationships with their client are elevated in the eyes of the law, because brokers have special duties to act in their clients’ best interests. As a part of a broker’s fiduciary duty, your broker is required to provide you with any and all “material facts” related to your investments. If your broker failed to tell you something relevant (“material”) to your investments, this nondisclosure would be considered an “omission” of facts and could be part of a successful claim for recovering investments the broker lost on your behalf. Similarly, if the broker told you something incorrect about your investment that in any way “misrepresented” the material facts of the investment, this misrepresentation could also be a part of a claim for recovering losses.

With or Without Intent, the Same Result

Any omission or misrepresentation can be perpetrated with or without intent. An intentional misrepresentation or omission is a form of stock broker fraud, because intentional deception is involved. If a misrepresentation or omission is committed without intent, the act can be a form of negligence. Negligent acts are also a violation of brokers’ fiduciary duty and can be grounds for a claim to recover a lost investment. Whether committed with or without intent, misrepresentations and omissions are serious offenses under securities law and can provide a starting point for your claims to recover losses. Contact us today for a free, confidential case evaluation if you believe your broker may have concealed, omitted, or misrepresented the complete truth about one of your investments. You may have grounds for a claim, and consulting professional legal help to pursue that claim is important. 

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