Securities litigation lawyers are the experts to call when you’re facing highly sensitive and complex litigation issues that call for professional help. They represent a diverse range of clients, including public and private companies, professional service providers, financial advisors, shareholders, and investment firms.
As a business manager, owner, or shareholder, you’re likely adept at managing many different challenges without the need for outside help. However, now could be the time to reach out to a securities litigation lawyer if you’re facing these issues:
Misrepresentation or Fraud in Investments
It’s not uncommon to find a securities litigation lawyer team assisting Toronto investors or company representatives in other locations due to misrepresentation or fraud relating to an investment.
Someone might have made a false statement about a company’s financial health or promises of guaranteed returns that are too good to be true. An investor might even have concerns about risks being concealed for certain investments.
By consulting a securities litigation lawyer, individuals can determine whether securities fraud has occurred and explore potential avenues for recovering losses through settlement, litigation, or arbitration.
Concerns About Stock Manipulation
Stock manipulation describes an individual or entity artificially influencing a security’s price for personal gain. Spreading false market rumors, pump-and-dump schemes, and short attacks are among the most common forms of stock manipulation. Investors may consider consulting a securities litigation lawyer and pursuing action against those responsible if they were misled into buying or selling stocks at unfair prices.
Broker Misconduct
Many people hire brokers or advisors to help them make financial decisions and recommend investments that align with their preferred risk tolerance and needs. When a broker doesn’t act in a client’s best interests, it can be reason enough to get a securities litigation lawyer involved.
There are many forms of broker misconduct, including churning and unauthorized trading. Churning refers to excessive trading aimed at generating commissions, whereas unauthorized trading involves buying and selling securities without the investor’s consent. Whatever the form of misconduct, a securities litigation lawyer can bring claims through the court or arbitration to recover damages.
Issues with Mergers and Acquisitions
In an ideal world, all business mergers and acquisitions would go off without a hitch, but that’s not always the case. Sometimes, lawsuits are brought about when investors believe that a deal would undervalue a company, or there were conflicts of interest during negotiations. Shareholders not being given full disclosure is also another common reason for a lawsuit. Hiring a securities litigation lawyer can enhance the likelihood of fairness, secure resolutions for shareholders harmed by unfair deals, and ensure proper disclosures.
Whistleblower Cases
If an employee or insider discovers a security fraud, they can choose to involve a securities litigation lawyer by reporting violations under the SEC’s whistleblower program. A lawyer can guide them through the reporting process, assist in securing financial rewards in some cases, and protect against retaliation.
While you may be able to manage many business problems on your own, some issues certainly require outside help. Now might be the right time to involve a securities litigation lawyer if you can relate to any of the situations above.