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Registered representatives, investment advisors and their firms are being sued with increasing frequency when the transactions they execute or investments they recommend fail to generate attractive returns -- a trend often reflecting an exploitive effort to retroactively shift the inherent risk of investing away from the customer. In this environment, to effectively defend against claims, an attorney must fully understand the mechanics and risks of an ever-growing menu of financial products and services.
Our attorneys are experienced business lawyers who have developed these capabilities to an exceptional degree in defending claims under the Federal securities laws, common law and state Blue Sky laws involving allegations of unsuitability, churning, unauthorized trading, misrepresentation and fraud, insider trading, violations of industry rules and regulation, negligent hiring, and failure to exercise adequate supervision. We are fully cognizant of the concerns of our clients and the impact of such claims on their businesses, and are keenly aware of the various regulatory issues accompanying customer complaints. We focus on minimizing the disruptive effects of these claims on our clients, assert vigorous defenses and develop defense strategies that facilitate early resolution. We are fully experienced in the litigation and arbitration of customer claims before the state and Federal courts and the various arbitration forums.
In addition to the defense of customer claims, we handle a wide variety of industry disputes by and between member firms and registered representative, including claims that arise from movement within the financial services industry. When registered representatives, traders, executives and other financial professionals change firms, the financial stakes can be significant. Firms will often challenge the movement of employees and principals, and the significant assets they control, by means of arbitration as well as litigation in the state and Federal courts. Often, the potential exposure for recruiting firms as well as those they recruit depends on the contractual relationship of the employee with his or her former firm. Several legal theories have evolved, which can be used to impose liability on the former employee and his or her new firm, even when there is no contract upon which such a claim can be premised. Our attorneys are particularly well suited to handling these ìraidingî cases, which involve claims of unfair competition, tortious interference with contractual relations, breach of post-employment covenants and misappropriation of trade secrets.
