When a Broker's Actions Cause Monetary Losses ...
In good economic times and bad, stockbroker fraud convinces investors to place their money in the hands of people who have misrepresented the value of the securities they are selling. When that happens, when investors lose money, a class action lawsuit may be the way to right a wrong.
ClassAction.com: Fighting Against Broker Fraud
If you have been the victim of broker fraud, you are probably not the only victim. At ClassAction.com, victims of broker fraud can share their experiences and learn how to fight back through class action lawsuits.
- Misrepresentations: In order to sell a stock, a broker may pump up the stock by making representations about revenues, profits and opportunities that are not true. The broker may be trying to drive up the value of stocks owned by the brokerage firm so that the firm can unload unwanted stock.
- Promises, promises: Any time a broker promises specific returns, investors should beware. Guaranteed returns — especially when those returns are well above market norms — cannot be relied upon. Brokers may also tout stock based on what they say is insider knowledge of pending deals.
- Ponzi schemes: In a Ponzi scheme, investors use money from new investors to pay dividends to long-term investors. Eventually the scheme will collapse, taking investors down with it. If you have been drawn into a Ponzi scheme, if you lost money, you are not alone.
Class action lawsuits are an effective means of representing the concerns of many people similarly affected in a single lawsuit. Why is that important? A lawsuit is expensive. It is difficult for an individual person — especially one who has lost money in broker fraud — to hire a lawyer and fight back.
If you have been defrauded by a broker, contact ClassAction.com.
