Securities Lawyers Blog
This is the most common question a potential client asks during an initial interview. This article is directed to those investors who are wondering if they have a claim but have not yet sought a consultation. Hopefully, this article will provide some insight into what a securities fraud attorney looks at when reviewing a potential client’s claim. However, I would stress that all evaluations are individual in nature and while this article is meant to provide generally instructive insight, only a full one-on-one consultation with an attorney can provide a full review of your claim and provide individual guidance.
In my analysis of a potential client’s securities claim I look at two primary factors: 1) the strength of the liability case; and 2) the ability to collect from the defendant. The answer to these two factors weigh heavily in moving forward with the potential client’s claim. The strength of the liability of the claim is the initial assessment of how likely a judge or arbitration panel would likely find the defendant liable for misconduct. The ability to collect factor looks at what potential defendants could be liable for the misconduct the client is alleging and the ability of those defendants to compensate the client’s losses. In many cases, the second factor will not need to be seriously investigated.
What factors influence the strength of the liability of the case? This is a hard question to answer because each case is different and liability is premised on different factors given the type of claims being made. In cases of fraud or misrepresentation the strength of the case often lies in the ability to prove the false statements made to the client. Written communications, emails, advertisements, and other documents that can be proven false or misleading tend to make stronger cases. If a securities regulator has also found the defendant’s conduct to be fraudulent or misleading or has disciplined the same or another brokerage firm for similar conduct such evidence helps to strengthen the case.