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Home > Securities > Misrepresentation / Omis
Securities Misrepresentation / Omission Attorneys
in Dallas, Texas
Your securities broker has the legal responsibility to deal honestly with you and to fairly disclose all of the risks associated with an investment. If your stockbroker misrepresents facts or fails to tell you material information involving an investment, and you lose money as a result, your broker has acted fraudulently. Basically, your broker has lied, either by distorting the facts or by not disclosing them to you.
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Federal and state securities laws make it unlawful for anyone to make misrepresentations or omissions in connection with the sale of a security. Stockbrokers, investment advisors, and financial planners must have a reasonable basis for the statements they make, and assurances or promises made without a reasonable basis may be unlawful.
For example, the compensation a stockbroker or his firm will make on a transaction he recommends to you is material information you are entitled to know. This is so even if the broker claims "you will not be paying it." The nature and source of the compensation is material information that you, as an investor, are entitled to know.
For another example, if a stockbroker tells you that a stock is definitely going up or that he will guarantee a 20 percent return on your investment, he or she is making a misrepresentation. Likewise, a stockbroker must provide you with all material information known to him about a potential investment, including the fees involved and the degree of risk you should expect.
If you believe that you have been a victim of securities fraud, you have certain rights, which you should be aware of, rights which may provide you an opportunity to recover your losses from your stockbroker or brokerage firm.
At Burg Simpson Eldredge Hersh & Jardine, P.C., our Dallas, Texas securities fraud attorneys represent people whose stockbrokers made material misrepresentations and omissions about their investment transactions. We'll evaluate your misrepresentation or omission claim for free and won't charge you any attorneys' fees unless and until we win or settle your claim. Please call or email us today.
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