Middletown, NY asked in Stockbroker Fraud for New York

Q: Do I have a claim for if there was also a general downturn in the market when I lost money?

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

A: You absolutely may still have a stockbroker fraud claim if their was a market downturn. Much will depend on the violation that you are alleging occurred whether it be fraud, misrepresentation, unsuitability or any number of potential violations. Your investment losses and whether you have sustained any are of course essential. Your financial profile and investment objectives which were stated to your financial advisor must also be considered. After the mass market loss following the Great Rescission of 2008 Individual investors still of course had valid claims for investment loss. The obvious defense of the broker dealers was that the market crash was completely unexpected and that the firm could not be blamed for an historic market downturn. The success of that defense and the strength of the investors claim to recover losses would depend on the factors listed above and arguments drafted by counsel.

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