Question

Can I sue my stock broker in Louisiana?

Sponsored Answer
Nicholas Berg - Securities Litigation - Super Lawyers

Answered by: Nicholas Berg

Located in New Orleans, LAReasonover & Berg, LLC

New Orleans, LA
Phone: 504-526-2921
Fax: 504-587-1577

View Profile
Answer

If you feel your stockbroker has mismanaged your account or wronged you in some way, you may be left wondering what your options are.

Fortunately, Louisiana allows clients of brokers to hold them legally accountable for misdeeds. The short answer is yes, you may sue your stockbroker. However, it comes with a few caveats.

Recognizing Signs Of Wrongdoing 

The first step toward action is recognizing exactly when wrongdoing has taken place. If your broker has made bad trades or has cost you money, that’s not necessarily a reason to suspect foul play. Here are a few common signs of broker misbehavior:

-   Bought or sold investments without your knowledge

-   Failed to inform you of the risks associated with an investment or strategy they recommended

-   Did not take your financial condition into account when making investments

-   Ignored your investment objectives and risk tolerance when making investment decisions 

-   Made complex investments that you did not understand

If you are uneasy with your brokers’ behavior, you may want to think about acting to prevent further losses or misappropriation of your funds.

Taking Action 

If you think that you have identified signs of wrongdoing, the next step can mean contacting an attorney. An attorney knowledgeable in securities law can help you complete an investigation into your portfolio and identify any issues that may arise.

If an attorney finds evidence of wrongdoing during their investigation, you’ll likely head to a process called arbitration with your broker.

Understanding Arbitration 

Most brokerage agreements call for disputes to be settled via FINRA arbitration. In this process, you will go before a panel of arbitrators appointed by FINRA after input from the parties. These arbitrators will hear your complaint and issue a ruling.

In many respects, an arbitration hearing is like a court trial. The parties are generally represented by attorneys who cross-examine witnesses, introduce evidence and make legal arguments.

Arbitration differs from traditional court hearings in that the discovery time (time to prepare your case) is much shorter and there are typically no depositions. Also, since you are in a private hearing, you will not have access to a jury. These two differences mean most arbitration cases are resolved relatively quickly.

Recognizing The Problem 

The most important part is recognizing what your broker has done with your hard-earned savings. One of the best ways to find out is through an investigation by an experienced attorney with knowledge of the rules and regulations governing the securities industry. Many law firms offer free initial consultations to investigate whether you may have been the victim of misconduct.

Disclaimer: The answer is intended to be for informational purposes only. It should not be relied on as legal advice, nor construed as a form of attorney-client relationship.

Other Answers By Nicholas Berg

Photo of Nicholas Berg

What can I do if I think my broker defrauded me in Georgia?

When you invest through a stockbroker, you expect them to put your best interests first. In fact, the law in most states (including Georgia) provides …

Sponsored answer by Nicholas Berg

Other Answers About Securities Law

Photo of Nicholas Berg

What can I do if I think my broker defrauded me in Georgia?

When you invest through a stockbroker, you expect them to put your best interests first. In fact, the law in most states (including Georgia) provides …

Sponsored answer by Nicholas Berg

Photo of Mark B. Wilson

What Should I Do If The Managing Partner Of A California Business Is Dishonest?

Most partnerships work harmoniously but, on occasion, honest partners can be victimized by a dishonest managing partner. This problem is not limited …

Sponsored answer by Mark B. Wilson

Call Me
504-526-2921

To: Nicholas Berg

Super Lawyers: Potential Client Inquiry

Disclaimer »
Privacy Policy »
*Required fields
Page Generated: 0.96189403533936 sec