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.

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 February 13, 2020

Burg Simpson E-News: February 2020

Join Our Email List Complex Business and Commercial Litigation, Construction Defects, Dangerous Drugs & Medical Devices, Mass Tort, Class Action, Medical Malpractice, Personal Injury, and Workers’ Compensation FEBRUARY 2020 E-NEWS GOOD LAWYERS 5280 Magazine Recognizes Denver’s Top Lawyers for 2020 Burg Simpson Eldredge Hersh & Jardine is pleased to announce that Michael S. Burg , Peter W…. Read more »

 February 13, 2020

National Trial Lawyers Announces Top Lawyers for 2020!

National Trial Lawyers Announces the Top Lawyers for 2020! Burg Simpson is pleased to announce that the National Trial Lawyers Association has selected the Top 100 Attorneys and the Top 40 Under 40 Attorneys for 2020! The National Trial Lawyers Association is an invitation-only organization composed of the premier trial lawyers from each state or region… Read more »

 February 12, 2020

Mediation vs. Arbitration: Resolving Your Commercial Dispute

Mediation vs. Arbitration: Resolving Your Commercial Dispute Most commercial contracts have a provision stating that the parties will mediate disputes before taking the issue to arbitration or trial.  For those seeking to resolve a commercial dispute, it is important to know that litigation is typically expensive, time-consuming, public, and unpredictable. A trial’s outcome is always uncertain… Read more »

 February 11, 2020

Short-Term Healthcare Insurance & the Institutionalization of Post-Claims Underwriting

Jessica L. Derakhshanian and Shane C. Fulton, trial lawyers with Burg Simpson Eldredge Hersh & Jardine, recently published an article in the January edition of The Colorado Lawyer entitled Short-Term Healthcare Insurance and the Institutionalization of Post-Claims Underwriting. The article provides a review of short-term health insurance regulation over the last decade and analyzes the… Read more »

david-hersh-case-settlement

 December 9, 2019

Settling Commercial Litigation Cases

An out-of-court settlement is a legally-binding agreement between the parties to a lawsuit that effectively puts an end to the legal matter. A settlement resolves all disputes inherent in the lawsuit, and results in dismissal of the claims filed in court.  Sometimes a settlement will contain a requirement that other court orders be entered effectuating… Read more »

Holding Pharmaceutical Companies Responsible – Mass Tort | Dangerous Drugs & Medical Devices

 November 12, 2019

Holding Pharmaceutical Companies Responsible – Mass Tort | Dangerous Drugs & Medical Devices

Burg Simpson’s Colorado mass tort attorneys have represented thousands of people who have suffered serious side effects after taking dangerous medications or those who have been hurt by a defective product.  If you have suffered injuries related to a defective drug or medical device, contact the Burg Simpson mass tort team at 303-790-2525.

bike-crash-safety

 November 8, 2019

Bike Crash Safety Video – Burg Simpson Personal Injury

The personal injury attorneys at Burg Simpson help fellow bicycle enthusiasts understand how to protect their rights after a bike crash and stay safe on the roads. If you have been hurt in a bike crash and need help, reach out to us today by calling our office or filling out our online free case… Read more »

7th Annual Jeremy Bitner Memorial Run for the Fallen Officers Fund

 July 1, 2019

7th Annual Jeremy Bitner Memorial Run for the Fallen Officers Fund

The Jeremy Bitner Foundation was established in honor of Englewood Police Detective Jeremy Bitner. Detective Bitner lost his life in the line of duty on May 28, 2012, after being struck and killed by a vehicle while performing a traffic stop. Jeremy served the Englewood Police Department for 8 years and during that time was assigned… Read more »

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