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5 Key Facts About Your Legal Rights as an Investor in the U.S.

September 29, 2023 Blog

Investors in the United States have clear legal rights. State and federal securities laws heavily regulate companies’ and brokerage firms’ conduct, and these laws give investors the right to take legal action when they fall victim to fraud. As an investor, it is important to know your legal rights—and when to take legal action—so that you can maximize your chances of recovering your fraudulent investment losses when necessary.

What You Need to Know About Your Legal Rights as a U.S. Investor

So, as an investor, what specifically do you need to know? Here are five key facts about your legal rights as an investor in the United States:

1. Companies and Firms Are Subject to Numerous Statutory Rules and Requirements  

From registration and disclosure to the obligation to act in investors’ best interests, companies and brokerage firms are subject to numerous statutory rules and requirements. These rules and requirements exist to protect investors, and many of them have been in place for decades. As an investor, you are entitled to make informed investment decisions, and you are entitled to rely on the advice of your investment professional.

2. Companies and Firms Don’t Always Follow These Rules and Requirements

However, just because companies and firms are supposed to act in a certain way, this doesn’t mean they will. Violations of securities laws and other investor protections are commonplace. If you suspect that you may be a victim of investment fraud, you should not ignore your concerns—and you most likely are not alone. If you have concerns about investment fraud, it is important that you speak with a lawyer as soon as possible.

3. The SEC Doesn’t Investigate Most Cases of Investment Fraud

While the U.S. Securities and Exchange Commission (SEC) is tasked with regulating the securities market in the United States, it doesn’t investigate most cases of investment fraud. There are simply too many. The SEC investigates large-scale and high-profile investment fraud cases, but most investors are left to take legal action on their own.

4. Even if the SEC Investigates, You Still Need to Take Legal Action

Crucially, even if the SEC is investigating your brokerage firm or a company in which you have invested, you still need to take legal action. There is no guarantee that the SEC’s investigation will result in a recovery, and even if it does, this recovery is not likely to provide full compensation for your investment losses.

5. Defrauded Investors Can Recover Their Lost Principle and Returns

As a defrauded investor, you have the legal right to fully recover your losses resulting from the fraud. This includes your lost principle and your opportunity costs (i.e., your lost returns). You can (and should) hire a lawyer to take legal action on your behalf—whether this means pursuing FINRA arbitration or filing a lawsuit in court.

Are You a Victim of Investment Fraud? Contact Us for a Free Consultation

Have you suffered fraudulent investment losses? If so, we can help you assert your legal rights. To discuss your case with a lawyer at Zamansky LLC in confidence, call 212-742-1414 or request a free consultation online today.

Client Reviews

“Jake Zamasky and his colleagues represented me in a FINRA arbitration case against a large multinational bank and succeeded in obtaining an award for the full amount of my investment losses. I would highly recommend the Zamansky firm for their experience in securities litigation, their level of detailed research and case preparation, and their ability to effectively fight for what’s right.”

Richard R.

“Throughout my entire case, Jake Zamansky was incredibly responsive and spent time walking me through each step of the process. He is professional and worked with my challenging schedule, even meeting with me nights and on weekends. He knew exactly which turn to take when it came to my case and yet was respectful of any decisions I wanted to make resulting in a positive outcome.”

Donald A.

“Jake Zamansky and his firm represented me in a FINRA arbitration case to recover investment losses. Jake and his team were very professional and worked very hard preparing for trial and then reaching a substantial settlement of our case. I would highly recommend them.”

William E.

“Jake Zamansky represented me in a FINRA arbitration case which allowed me to recover a substantial portion of investment losses. He is truly an expert in this space and I would highly recommend him to those investors who may have been been a victim of investment fraud.”

Chris K.

“Jake and his team did a great job communicating with me throughout the process of my lawsuit. I would recommend him to anyone looking to sue UBS for unethical practices.”

Mike A.
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