When Can Investors Sue Their Brokers for Stock Market Losses?

Every day, individual investors fall victim to errors, negligence and misconduct on the part of their stock brokers. When stock brokers’ improper actions result in stock market losses, investors may be entitled to financial compensation. If you are questioning your broker’s actions, an experienced securities lawyer will be able to help you conduct a thorough investigation to determine whether your losses can be tied to misconduct so that you can pursue a claim for damages.

A Word of Caution: Breach of Fiduciary Duty

We will actually start with when you cannot sue your broker – because, here, there is an important distinction to be made. While most people assume that their stockbrokers are fiduciaries (meaning that they are legally obligated to put their clients’ interests before their own), the reality is that not all brokers are subject to a fiduciary duty.

The U.S. Department of Labor has proposed a new rule that would raise the bar for brokers selling securities for retirement accounts, and the current chairwoman of the Securities and Exchange Commission (SEC) is advocating for a heightened standard across the board. However, until these changes come to fruition, individual investors need to be wary of unregistered brokers – who may not have their best interests in mind.

Contact Zamansky LLC for More Information

If you have experienced sudden and unexpected losses in your brokerage account, the stock market loss lawyers at Zamansky LLC can help you determine if you have a claim against your broker. Contact us today to schedule a confidential consultation.