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 securities law claim for recovering high risk 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 securities law claim for recovering losses.

With or Without Intent, the Same Result

Any misrepresentation and omissions can be perpetrated with or without intent. An intentional misrepresentation and omission is a form of stockbroker fraud, because intentional deception is involved. If a misrepresentation and omission is committed without intent, the act can be a form of negligence. Negligence is also a violation and can be considered Breach of Fiduciary Duty. This can be grounds for a securities law claim. Whether committed with or without intent, misrepresentations and omissions are serious offenses under securities law and can provide a starting point for your securities law claim 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 securities law claim, and consulting professional legal help to pursue that claim is important.

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