Investors accept the risks of everyday market fluctuation, but they do not accept the risk of fraud or broker misconduct. The three most common forms of broker misconduct are churning, unsuitability and misrepresentation.
- Churning occurs when a broker drives up investor commissions by excessive buying and selling.
- Unsuitability occurs when a broker sells investments that are unsuitable for an investor — e.g., selling an aggressive growth stock to investors who are intent on preservation of capital.
- Misrepresentation occurs when a broker sells investments through important misrepresentations as to the nature and risks of the investment.
Claims against brokerages are made through arbitration.
Securities Arbitration
Brokerage account agreements require that investor claims against brokers and brokerages be resolved through arbitration under the Financial Industry Regulatory Authority (FINRA). Arbitrations are generally binding on the parties. Chicago investor rights lawyers at Kahn & Associates have successfully represented clients seeking recoveries in FINRA arbitrations for
30 years.
Shareholder Rights Lawyer
The Chicago area firm of David B. Kahn & Associates, Ltd., based in Northfield, Illinois, asserts its clients' arbitration rights aggressively and thoroughly, with exceptional skills. Our attorneys provide clients with a high degree of professionalism, experience and knowledge.
We have successfully pursued claims such as churning, unsuitability, misrepresentation and fraud, unauthorized trading and improper asset allocation, among others.
Securities Class Action Suits
Our lawyers at Kahn & Associates are extremely knowledgeable about the workings
of the capital markets. We investigate situations involving large numbers of investors defrauded by public companies, their auditors and their investment bankers. We are familiar with the public securities markets and the fraud and abuses that occur there.
If your rights have been violated by a brokerage, call the Northfield, Illinois, based shareholder rights lawyers at David B. Kahn & Associates, or e-mail us to discuss your situation.