Business Attorney in Los Angeles

Securities Dispute Services for Businesses & Public Investors

We represent public customers in securities disputes involving brokers, financial advisors, and brokerage firms. We handle securities arbitration, securities mediation, and securities litigation. Each process has different procedures, decision-makers, and strategic considerations, so we evaluate the governing agreements and underlying conduct before recommending a path.

FINRA Securities Arbitration

Securities arbitration is a private dispute-resolution process in which arbitrators hear evidence and issue a decision. Many customer disputes with brokerage firms proceed through FINRA because the applicable account agreement contains an arbitration provision. Our firm has tried more than 80 cases to conclusion in FINRA arbitration and has represented hundreds of public investors.

An arbitration claim may require analysis of account statements, trade confirmations, communications, offering materials, investment recommendations, and the customer’s objectives and risk tolerance. Procedures and deadlines depend on the facts and governing rules, which makes early review important.

Securities Mediation

Mediation is a nontrial process in which a neutral mediator helps the parties explore a possible negotiated resolution. Unlike an arbitrator or judge, the mediator doesn’t impose a decision. Mediation may occur before or during arbitration or litigation, but whether it is appropriate depends on the evidence, parties, disputed losses, and willingness to negotiate.

Securities Litigation

Some securities disputes proceed in state or federal court rather than arbitration. Litigation may involve pleadings, document discovery, depositions, motions, hearings, and potentially a trial. Jurisdiction, contractual provisions, parties, and asserted claims can affect whether litigation is available and where the case may be filed.

Broker Misconduct & Investment-Loss Allegations

A decline in an investment’s value doesn’t by itself prove misconduct. Our review looks at what was recommended, what the customer authorized, what risks were disclosed, how the account was managed, and whether the activity was consistent with the customer’s financial circumstances and objectives.

Issues that may warrant closer review include:

• Broker misrepresentation or omission: Material information about an investment, strategy, cost, liquidity, or risk may have been misstated or withheld.
• Unauthorized trading: Transactions may have occurred without the customer’s required approval or without proper discretionary authority.
• Unsuitable investments: A recommendation may not have aligned with the customer’s objectives, financial position, experience, or risk tolerance.
• Overconcentration: Too much of an account may have been placed in one investment, asset class, strategy, or market sector.
• Churning: Excessive trading may have generated commissions and costs without serving the customer’s investment goals.
• Selling away: A broker may have recommended an investment outside the brokerage firm’s approved products or supervision.
• Hedge fund misconduct: Losses may involve misrepresentation, mismanagement, valuation concerns, undisclosed conflicts, or fraud.
• FINRA violations: Conduct may raise issues under rules governing recommendations, communications, supervision, and customer accounts.

Investment-Loss Analysis for Individuals & Entities

Our evaluation begins with the financial record rather than a broad assumption about why an investment lost value. We examine profit-and-loss information, account statements, transaction histories, and available communications to understand how the losses developed. We also consider who controlled the account, what the broker recommended, which transactions were authorized, and what disclosures were provided.

These disputes may affect personal portfolios, company assets, retirement accounts, trust assets, estate holdings, or other financial interests.

The customer may have invested in:

• Stocks
• Bonds
• Mutual funds
• Options
• Annuities
• Structured products
• Private placements
• Limited partnerships
• Real estate investment trusts
• Tenant-in-common interests
• Reverse convertibles
• Principal-protected notes
• Unit investment trusts

Documents that may assist an initial review include:

• Brokerage and advisory account statements
• Trade confirmations and transaction summaries
• Emails, text messages, letters, and other communications
• New-account forms and investment-profile documents
• Offering memoranda, prospectuses, and marketing materials
• Contracts, subscription agreements, and account agreements
• Tax records or profit-and-loss reports reflecting investment activity
• Notes identifying what was recommended, promised, or authorized

Not every document will be available at the outset. An initial consultation can identify which records are most relevant and whether additional investigation may be appropriate.

Los Angeles Courts & Securities Case Procedure

A securities-related lawsuit in Los Angeles may involve extensive financial records, multiple parties, overlapping claims, and complicated procedural questions. The Los Angeles Superior Court Complex Civil Litigation Program addresses cases involving numerous parties, multiple claims, or complex legal or procedural issues. Whether a particular case qualifies for complex designation depends on its specific characteristics and the court’s assessment.

Court litigation is procedurally different from FINRA arbitration and private mediation. Arbitration generally follows the applicable forum rules and arbitration agreement, while litigation follows court rules, pleading standards, discovery procedures, and judicial case management. Forum selection may depend on account agreements, the identity of the parties, jurisdiction, asserted claims, and applicable law.

Request a Securities-Loss Case Evaluation

A focused case review can clarify whether the available facts fit our securities practice and what additional information may be needed. Jonathan W. Evans has practiced law since 1975, and our firm limits its securities representation to public customers rather than financial firms. You may also review client testimonials when evaluating fit.

To discuss business or personal investment losses, call (818) 760-9880 or contact us online to request a free initial consultation with our Los Angeles business lawyer.