Rochester, NY asked in Stockbroker Fraud for New York

Q: If the stockbroker didn't force you to buy the stock, but did talk it up

and then the investment didn't work out - can we still sue?

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1 Lawyer Answer
Alex Schmidt
Alex Schmidt
  • Criminal Law Lawyer
  • Cranford, NJ
  • Licensed in New York

A: As a former Series 7 and 66 stockbroker I can attest to having personally "talked up" many different securities. Whether there is a cause of action depends on what you mean by "talked up". If the stock broker mispresented the issue or provided false information concerning the stock there would be grounds for a fraud claim against the broker. There may also be grounds for a claim if the stock broker related the stock back to your financial profile. For instance, if the stock broker claimed the stock offered safety and a healthy dividend in line with stated investment objectives of safety of principal and income when in reality the stock was an extremely volatile microcap, there would be claim for unsuitability. In the end it’s a fact sensitive inquiry and more information is needed on what the stockbroker expressly stated.

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