Business / Commercial Litigation

Securities Unsuitability Fraud Lawyers

A broker or brokerage firm can be liable to you for the losses you sustain if the securities they recommend are too aggressive or otherwise unsuitable for you. A broker and a brokerage firm have a duty to recommend only “suitable” investments for a customer. A suitable recommendation is one that takes into consideration the investor’s individual situation, including the investor’s financial needs and tolerance for risk. By contrast, a recommendation that is unsuitable is one that fails to be appropriate for an individual investor given their specific situation and tolerance for risk.

The Financial Industry Regulatory Authority (FINRA) has rules implementing the Suitability Standard for Recommendations, also called the Suitability Rule.

NASD Conduct Rule 2310: Recommendations to Customers (Suitability)

  • In recommending to a customer the purchase, sale, or exchange of any security, a member shall have reasonable grounds for believing that the recommendation is suitable for such customer upon the basis of the facts, if any, disclosed by such customer as to his other security holdings and as to his financial situation and needs.
  • Prior to the execution of a transaction recommended to a non-institutional customer, other than transactions with customers where investments are limited to money market mutual funds, a member shall make reasonable efforts to obtain information concerning:
    • The customer’s financial status
    • The customer’s tax status
    • The customer’s investment objectives
    • Such other information used or considered to be reasonable by such member or registered representative in making recommendations to the customer

The NYSE has codified its “Know Your Customer Rule” as Rule 405, Diligence as to Accounts, which provides:

  • Every member organization is required to:
     
    “Use due diligence to learn the essential facts relative to every customer, every order, every cash or margin account accepted or carried by such organization and every person holding power of attorney over any account accepted or carried by such organization.”
     
    If you believe that you have been a victim of an unsuitable securities recommendation or any type 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.

Our securities fraud attorneys represent victims of securities fraud. We’ll evaluate your claim for free and won’t charge you any attorneys’ fees unless and until we win or settle your claim. Please contact us today.

 September 16, 2020

Four Teen Victims Seek $16 Million in Arizona Child Abuse Case

A team of Burg Simpson attorneys including Scott Eldredge, Seth Katz, Ty Taber, Paul Friedman, and Christopher Post along with Tucson-based victims’ rights attorney, Lynne Cadigan, is representing four adoptive children who are named as victims in $16 million child abuse cases filed in Arizona. The children allege they were subjected to aggravated assault and… Read more »

 September 8, 2020

Former Burg Simpson Scholarship Winner is Using Her Funds Wisely!

Ms. McKenna Gilbreth is one of the previous winners of Burg Simpson’s annual scholarship. McKenna recently wrote to Mr. Michael S. Burg, Burg Simpson’s founder, to thank him and to share how she is using her scholarship funds. Now attending Southern Methodist University in Dallas, TX, McKenna wrote from her dorm room that despite the… Read more »

 September 3, 2020

September 2020 E-News

Congratulations to Our Best Lawyers in America® Forty-seven Burg Simpson attorneys have been recognized in the 2021 edition of Best Lawyers in America ®. (33 “Best Lawyers” and 14 “Ones to Watch.”) See the list of Burg Simpson attorneys selected to the 2021 Best Lawyers in America ® here. Three Burg Simpson Lawyers Also Named Best… Read more »

 August 27, 2020

Burg Simpson’s Colorado Scholarship Competition 2020-2021

Burg Simpson has always recognized the importance of access to a strong education. Starting in 2012, we launched the Burg Simpson Scholarship Competition. Each year, Colorado high school seniors are encouraged to write and submit a 1,500 word essay on the importance of the civil jury system as the guardian of American rights and liberties… Read more »

Greeley, CO – Two Workers Killed in Work Accident on 1st Ave

 June 19, 2020

David Hersh: COVID-19 and Loss of Business Income

Shareholder David Hersh Discusses COVID-19 and Loss of Business Income  David P. Hersh is a shareholder and co-practice group leader with  Burg Simpson’s business and commercial litigation department.  “I am David Hersh, Co-leader of the Commercial Litigation Department at Burg Simpson. Business owners across the country have suffered from the loss of business income as… Read more »

David TeSelle Discusses Qui Tam Lawsuits

 June 18, 2020

David TeSelle Discusses Qui Tam Lawsuits

David K. TeSelle is a trial lawyer and co-practice group leader with  Burg Simpson’s business and commercial litigation department.  “Do you have confidential information about a company who is cheating the state or federal government out of money, leaving the American taxpayer holding the bag? If so, there is something you can do about it,… Read more »

 June 16, 2020

Shareholder Jacob Burg Discusses Burg Simpson’s Commitment to Pro Bono Work

Jake Burg is a shareholder and a trial lawyer with  Burg Simpson’s personal injury department. “Since the firm’s inception in 1976, Burg Simpson has been committed to providing pro bono legal services to heroes who have dedicated themselves to serving others in times of great need. As an attorney with Burg Simpson, I was proud to… Read more »

Denver, CO – Two Injured in Motorcycle Accident on I-25 (CanAm Highway)

 June 15, 2020

Injured in a Motorcycle Crash? Call Burg Simpson Now

Injured in a Motorcycle Crash? Call Burg Simpson Now Shareholder Stephen J. Burg is a trial lawyer and the practice group leader of the firm’s personal injury department. If you, or someone you know, has been injured in a motorcycle crash, you need someone to be on your side. Insurance companies make huge profits by… Read more »

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