Misrepresentation & Omissions

Your financial advisor has the legal duty and responsibility to deal honestly with you, and to fairly disclose all of the risks associated with an investment, so that you can make an informed decision. If your financial adviser makes misrepresentations of material facts, or fails to tell you material information involving an investment, known as omissions, then he has in likelihood violated one or more securities laws.

Federal and state securities statutes and regulations make it unlawful for anyone to make misrepresentations or omissions in connection with the purchase or sale of a security.  Financial advisers must have a reasonable basis for the statements they make, and assurances or promises made without a reasonable basis may be unlawful.

For example, if a financial adviser tells you that a stock is definitely going up, or that he will guarantee a 20 percent return on your investment, he or she is likely making a misrepresentation. Likewise, a stockbroker must provide you with all material information known to him about a potential investment, including the fees involved and the degree of risk you should expect.

If you suspect that your financial adviser made misrepresentations and/or omissions in connection with your purchase or sale of any investment, please contact Wittenberg Law to discuss your legal rights and options.