Securities litigation may be necessary for these abuses


With any type of investment, there is usually an opportunity for losses. Most New York investors understand this and take careful precautions to minimize potentially significant losses. However, those losses can sometimes be attributed to things outside of the nature of investing. For people who have suffered financial losses because of another person’s wrongful actions, securities litigation could help recover some of those damages.

Companies of all sizes and reach can be engaged in securities abuses. Common abuses include fraud and market manipulation. Allegations of company fraud usually relate to inaccurate or undisclosed relevant information, such as accounting practices, financial statements, takeovers and more. Market manipulation is when a company engages in activities that promote false impressions of its security, price movement or trading activity. Both of these abuses can lead to serious financial losses for investors.

It might feel reassuring to blame large corporations for the majority of securities fraud abuses, but this is not accurate. Both investment institutions and individual brokers can cause harm for investors. Common sources of financial losses include unauthorized trading, misrepresenting or omitting relevant information, excessive trading to boost commissions — also known as churning — and misappropriating funds.

Scams are another concern for New York investors. Newer technology has made it easier for con artists to target potential victims, particularly the elderly. These individuals usually promise significant financial returns through aggressive sales tactics, effectively tricking victims into making risky and unpromising investments.

It is understandable for a person to want to pursue action after losing a significant amount of money due to another’s negligence. This can be a tricky process, particularly since victims’ options for pursuing securities litigation can be isolated to only one option, such as class actions or arbitration. Companies may even try to bully investors who unnecessarily lost money into taking quick settlements that do not accurately reflect damages. This is one of the reasons that many people choose to have experienced attorneys on their side.