Investment Loss Recovery

Securities Arbitration – Investor Representation against Investment Firms

Evers Law Group represents the interests of victimized investors who have suffered investment losses in their portfolios as a result of negligent investment advice. We aggressively represent our investor clients in arbitrations and fight for the reimbursement of their ill-fated investment losses from brokerage firms and registered investment advisors.

These cases are generally initiated based upon the inappropriate recommendation of high risk and/or unsuitable investments made by registered investment advisors, brokerage firms and/or their financial advisors. The securities claims typically seek the recovery of lost principal and other investment opportunities.

Evers Law Group evaluates investors' securities cases at no charge. Should the investor and Evers Law Group agree to proceed and file, a contingency fee agreement will be entered into so the fee for legal services is only payable if we receive a favorable result.

Securities litigation cases are litigated via binding arbitration which is overseen by FINRA Dispute Resolution. Arbitrations are less cumbersome and much more streamlined than superior court actions. Claims may include allegations of fraud, negligence, churning, unauthorized trading, failure to disclose, failure to supervise employees, failure to execute, improper use of leverage or margin, overconcentration and intentional misrepresentations and omissions.

Many of the products offered by brokerage firms, such as reverse convertible securities, collateralized debt obligations, indexed currency option notes, hedge funds, short funds and managed money "wrap fee" accounts are extremely complex and investors are not always fully informed, if at all, of the extreme risks involved in such instruments. Evers Law Group has successfully prosecuted these types of claims putting cash back in the victimized investors' pockets.

Frequently Asked Questions

Below are several frequently asked questions with regard to initiating a lawsuit against your financial advisor, brokerage firm, or registered investment advisor and the services offered by Evers Law Group.

How do I determine if I have a case concerning my investment losses?

Evers Law Group will provide a free evaluation of your case relating to your securities losses. Simply contact us by phone at 916.974.3000 or by email at Admin@EversLaw.com.

Does Evers Law Group represent investors on a contingency fee basis so that investors do not have to pay attorneys' fees unless they recover funds from the financial institution or brokerage firm?

Yes. Evers Law Group will evaluate your securities case at no charge to you. Should the investor and Evers Law Group agree to proceed and file a case, a contingency fee agreement will be entered into so that the fee for the legal services is only payable if we receive a favorable result. Contingency fees are usually calculated as a percentage of the investors' net recovery. However, if you recover nothing, you pay no legal fees, only the costs associated with prosecuting your claim.

If I sue, do I go to court and wait for a jury trial which may take years?

No, your case will be arbitrated and heard before FINRA (Financial Industry Regulatory Authority). Arbitration is how most disputes between investors and financial institutions are resolved. Arbitration is less formal than court and cases are heard and resolved in shorter timeframes than in court actions. Typically, three arbitrators listen to the testimony and evidence and make the decision.

What types of conduct are actionable against my financial advisor and/or his employing brokerage firm?

Suitability Claims: Every investment recommendation made to an investor by a financial advisor must be "suitable" based upon the investor's risk tolerance, investment objectives, financial status and other relevant factors. An investment recommendation may be unsuitable if it is not made in accordance with the investor's investment objectives; the investor does not have the financial ability to incur the risk associated with the investment; or the investor did not know or understand the risk associated with the investment.

Overconcentration Claims: Overconcentration claims are actionable when an investor, at the recommendation of a financial advisor, maintains a portfolio that is overconcentrated in a single issuer and/or asset class. A financial advisor should never place all of an investor's investments or "eggs" in one basket. A financial advisor that fails to diversify a customer's account may be liable should the investment decline in value.

Improper Use of Margin: Margin accounts can be very risky. The investor may leverage their assets via a margin account held at a financial institution and purchase securities with borrowed money. The loan from the institution is secured by securities in the account. Investors who trade securities on margin incur the potential for higher losses and for "margin calls." The institution can force the sale of securities in your account and can sell your securities without contacting you. As a result, there are additional risks involved with trading on margin that financial advisors must disclose to their customers.

Churning: Churning occurs when a financial advisor engages in excessive trading in an investor's account in an attempt to generate excessive commissions. To prove that the pattern of trading in the account was excessive, the activity in the account is analyzed to determine whether it meets certain threshold calculations. The investor must prove that the financial advisor exercised control over the decision making in the account, the trading was excessive, and that the financial advisor acted in reckless disregard of the investor's interests.

Negligence: Negligence is conduct which falls below the "legal standard" established to protect others against unreasonable risk of harm. Generally, negligence is the failure to use such care as a reasonably prudent and careful person would use under similar circumstances. If a financial advisor is negligent in his dealings with an investor, then the investor may have recourse against that financial advisor.

Misrepresentations and Omissions: Federal and state laws prohibit financial advisors from making "material misrepresentations" about investments that they are selling to customers. The laws impose upon the financial advisors and financial institutions an obligation not to omit any information that a reasonable investor would want to know about in making a decision to invest. A financial advisor or financial institution may be liable to a customer if they misrepresent material facts or fail to disclose material facts to the investor in the sale or recommendation of an investment.