Legal Guide

Lost Your Investment? You May Need an Attorney

In a perfect world, people will constantly earn passive income and gradually build wealth from their investments. However, this doesn’t always happen, as most investors lose their money due to stockbroker misconduct. 

Losing your investment, regardless of the amount or type, is heart-breaking. Being in this situation can negatively impact your life and even become a reason for lifelong debt. 

Recovering from investment losses is far from smooth and simple, which is why you should seek the legal counsel of investment loss attorneys. Their services provide countless benefits, one of which is assisting you in recovering your money. 

Why Do You Need an Attorney?

Losing an investment, especially when it is caused by the misconduct of a stockbroker, is grounds for a legal case. Your stockbroker is responsible for managing your portfolios and deciding when to buy or trade financial securities, and not meeting any of these gives you the right to file a case.

Due to litigations are long processes, you need the help of an attorney. Their legal services are vital in situations like these as they can help you recover from your loss. 

Aside from having first-hand experience in representing clients in various types of commodities broker, stockbroker, and investor adviser investment cases, attorneys are also knowledgeable in the investment practices in your state. Investment laws are complicated and vary per state, and the type of investment involved, which is why working with an attorney is crucial. 

Generally, to resolve investment disputes, a civil lawsuit may be filed. This type of lawsuit concludes in a monetary damages award to reimburse the non-breaching party for their investment losses. Punitive damages aren’t always required from the defendant unless the case involves wilful and reckless violations.

Investment disputes have many components and failing to understand one of them will likely reduce your chances of winning your case or getting compensation from your stockbroker. 

Without a doubt, it’s best to work with an attorney the moment you lose your investment due to broker misconduct. An attorney can thoroughly review your case, educate you on your rights, and maximize any remedies available to you. 

What Can an Attorney Do?

The main responsibility of an attorney during investment disputes is to help clients like you get compensation from your stockbroker and recover the money you lost. Sure, the end goal might seem easy, but the process of getting there isn’t. 

Regardless if you lost your investment because your stockbroker committed fraud, theft, forgery, or breach of fiduciary duty, consulting an attorney should be your first step. 

When you have an attorney working for you, you can eventually recover money from your investment as they can:

1. Help Determine Broker Misconduct

Your chances of winning your case depend on the facts you present in court. Sure, your broker “mishandled” your investment, causing you to lose a lot of money, but how? Do you think you can establish a case in court if you can’t even determine how your broker failed their responsibilities?

An attorney can help you recover your money because they can easily determine broker misconduct. There are many ways brokers behave improperly against the law, and an attorney can prove any of these. They have in-depth experience and knowledge in dealing with investment disputes, making it easy for them to spot any broker misconduct. 

2. Classify Your Case

You can experience different investment losses. For example, you might have lost your investment because of fraud, margin call liquidations, churning or excessive trading, or due to your broker’s unauthorized selling.

Not knowing how to classify your case can result in bigger financial losses. One of the biggest investment losses is the case of GPB Capital Holdings, where the victims continuously seek redress for their abnormal financial losses for 18 months. 

An experienced attorney will explore every single ground you could sue on. This is important because different categories of investment losses require different types of claims.

3. Assess if You Have a Solid Investment Loss Case

Just because you lost your investment because of your broker’s misconduct doesn’t mean that you have a strong case in court. Aside from determining the type of misconduct your broker committed and the category of your case, you need to put up a compelling argument in court.

It might be true that the misconduct of your broker costs you a lot of money, but the burden of proof is on your shoulders. As a plaintiff, you need to provide pieces of evidence to prove that your broker is indeed guilty.

An attorney can assess if you have a solid investment loss case and help you create arguments to show how and why your broker is guilty. With this service, you can improve your case even before the trial starts or prevent you from starting a case you’ll lose. 

When Should You Hire an Attorney?

The moment you notice a dramatic change in your investment portfolio’s composition or when your broker pressures you to transfer money immediately, be wary and consult an attorney right away.

These are common signs of broker misconduct, which can cause you to lose thousands or even millions of dollars.  

An Attorney is Essential in Investment Loss Cases

Although it can be very tempting to sue your broker by yourself for potential misconduct that led you to lose your investment, keep in mind that the entire process isn’t as straightforward as you think. You need to follow certain legal processes to ensure that you’re compensated properly. 

When you hire an attorney, you'll have significantly better chances of winning your case, allowing you to receive compensation and recover your money.

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