Case Evaluation

Do you have a Claim? Evaluating your Investment Loss

Does your case meet the basic Financial Industry Regulatory Authority (FINRA) requirements in pursuing a claim? Common claims in securities arbitration include Excessive Trading, Fraud, Negligence, and Unsuitability. In most of these claims, the credibility of the customer and of the broker are crucial to the arbitration process.

Before proceeding with your claim Cold Spring Advisory Group will evaluate your case to determine the viability of your claim. Our account review can assess any broker liability or misdeeds and advise you on a suggested course of action.

Cold Spring Advisory Group will educate you throughout this process.

COMMON CLAIMS IN SECURITIES ARBITRATION

Unsuitability
Broker recommended investments that were not appropriate for the investor's age or investment objectives. Prior to making trades on your behalf, brokers have a duty to gather essential information in order to understand your reasonable tolerance of risk.

Up-to-date records must be kept on file with the financial status and investment objectives for accounts. When recommending to a customer the purchase or sale of any security, a broker shall have reasonable grounds for believing that the recommendation is suitable for such customer upon the basis of the facts available.

Failure to Diversify/
Over Concentration
Investors who invested in only one type of security, leaving out other sectors of the market, and placed an inordinate percentage of their assets in those stocks are often found to be over concentrated. Over concentration of portfolios can be an indication of negligent and/or reckless broker advice.

Material Misrepresentations or Omissions
Misrepresentation cases involve false statements, or omissions, of material fact and non-disclosure of risk such as a broker intentionally misleading or failing to disclose a material fact about an investment.

COMMON CLAIMS IN SECURITIES ARBITRATION

Excessive Trading (Churning)
When an account is over-traded to generate commissions, this is referred to as churning. In the typical churning case, the customer must prove: 1) that the broker controlled the account; 2) that the trading was excessive in light of investment objectives; and 3) that the broker intended to defraud the customer or acted willfully or recklessly.

Negligence
Broker failed to use reasonable diligence in the timely handling of the affairs of the customer, and did not act as a reasonable and prudent broker would have acted.

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