Wisconsin Securities Litigation

Securities litigation is incredibly complex and necessitates exceedingly knowledgeable legal representation with much to be won or lost. Increasing revelations of concerns and apprehensions in regards to the securities industry have guided individuals to pay extra care and better understand how their brokers are doing business which has in due course managed to lead to increasing amounts of securities disputes throughout the United States. Frequently, mediation or arbitration is necessary in order to reach a solution and the highly experienced business attorneys at Loftus & Eisenberg who specialize in securities litigation can help.

When an individual obtains the services of a broker and that broker takes on responsibility of that individual’s finances and investment capital, there is an understanding that the broker is required to act with the client’s best interest above all, in all facets of their investments. If or when a broker intentionally betrays this trust, the broker may be perpetrating securities fraud.

Under the Wisconsin Uniform Securities Law, (Wis. Stat. § 551 et seq) it is prohibited to take part in a course or business or a transaction associated with a purchase or a sale of securities which “tends to work a fraud or deceit” on a purchaser or seller. Any brokerage firms who do not follow this law are exposed to claims of fraud. “Churning” is a commonplace type of investment fraud which occurs when a broker predominantly either buys or sells securities based on their commissions without taking into account if those transactions are in the client’s best interest. Similarly, if a broker opens up the client to uncalled-for risks which lead to considerable losses, it may also constitute fraud.

Furthermore, several other grounds for securities disputes may result from fraud, negligence, and misrepresentation. It is also required that these brokers do not failure to supervise, breach their fiduciary duty, participate in any unauthorized trading, or realize any over-concentration under common law.

It is often times the investment losses that lead to securities disputes. In some cases, the financial advisor or brokerage firm could be considered legally responsible and financial losses and damages could ultimately be recovered. In other cases, where investors have engaged with a brokerage firm, an arbitration agreement would be obligatory in order for them to leverage the Financial Industry Regulatory Authority (FINRA) arbitration process. In addition, SEC Rule 12 permits arbitration of securities disputes.

In order to effectively take legal recourse, any of the causes previously listed will necessitate proof of various elements. For example, under Wisconsin common law, a plaintiff who asserts fraud is required to prove the following:

• an incorrect statement or misrepresentation of quantifiable fact
• that the individual who crafted the statement did so knowing it was fabricated
• the statement was intentionally made to cause action by another individual based on the trust and confidence on the statement by their trusted advisor, the broker
• that the plaintiff took action based on the fact that the statement was accurate and truthful
• damages were the end result of relying on the statement

It is more often than not, securities disputes are extremely complex with much at stake and legal representation matters. The attorneys at Loftus and Eisenberg highly proficient in securities litigation can help clients in Milwaukee and across Southern Wisconsin help clarify and put an end to these complicated conflicts.