Broker Misrepresentations and Omissions
Your broker has an obligation to fully disclose the features and risks of the investments and investment strategies that he (or she) recommends to you. Importantly, it is not sufficient for your broker to simply provide you with a prospectus or term sheet or research report and rely on the disclosures contained in such documents to satisfy his (or her) disclosure obligations. If there is something you don’t understand about an investment or strategy that your broker recommends, he (or she) has a duty to take the time to explain it to you until you do understand it. Otherwise, you cannot possibly make an informed decision about whether to buy, sell, or hold that investment or pursue that strategy.
If an investment’s price has the potential to fluctuate wildly, your broker has a duty to make sure you know that fact before you purchase it. If an investment’s price is at an historical high or low, your broker has a duty to tell you before you buy or sell it. If an investment is illiquid or if it cannot be sold for a fixed period of time, your broker has a duty to tell you. If an investment’s price is sensitive to interest rates or the performance of a particular sector or industry or some other benchmark, your broker has a duty to tell you. If your broker is going to earn a commission or fee on a particular investment or investment strategy, he (or she) has a duty to disclose that to you.
If your broker misrepresented or omitted information about your investments, contact Jacobson Law P.A. to discuss the specific facts of your case. You may have a claim and could be entitled to recover damages.