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How Do You File a Claim for Securities Fraud in the U.S.?

August 30, 2024 Blog

If you are a victim of securities fraud, how do you file a claim to recover your investment losses? When dealing with fraudulent investment losses, it is imperative that you quickly take the correct steps to assert your legal rights. Mistakes and oversights can prove costly, and if you aren’t careful, you could make it much more difficult to secure the compensation you deserve. Securities fraud lawyer Jake Zamansky explains:

Filing a Claim for Securities Fraud as an Individual Investor

Broadly speaking, individual investors have two options when it comes to seeking to recover fraudulent investment losses. However, these are different options in different scenarios—so you need to make sure you choose wisely.

If you have a securities fraud claim against your broker, then you will most likely need to pursue arbitration with the Financial Industry Regulatory Authority (FINRA). If you have any other type of securities fraud claim, then you will most likely be looking at filing a lawsuit in court.

Either way, you can—and should—hire a securities fraud lawyer to represent you. This costs nothing out of pocket, and hiring an experienced lawyer will give you the best chance of recovering your fraudulent investment losses. Generally speaking, securities fraud lawyers provide contingency-fee representation for both:

  • FINRA Arbitration – FINRA regulates stockbrokers in the United States, and it provides an arbitration forum for resolving investor-broker disputes. Registered brokers are required to participate in FINRA arbitration, and FINRA’s arbitrators are generally well-versed in the laws, rules and regulations that protect investors. In FINRA arbitration, defrauded investors can seek compensation not only for their fraudulent investment losses but for their legal fees and other costs as well.
  • Securities Fraud Litigation – If your claim does not qualify for FINRA arbitration, then you will need to take your claim to court (though many litigated cases settle long before trial). In securities litigation, defrauded investors can seek damages for investment losses resulting from numerous forms of fraud—from insider trading and corporate disclosure violations to violations of the Employee Retirement Income Security Act (ERISA). While defrauded investors will need to pursue their claims individually in most cases, large-scale securities fraud can also give rise to class action lawsuits.

Regardless of where you need to file your claim, you will need to be able to prove both (i) the fraud that caused your investment losses and (ii) the investment losses (and other damages) you are entitled to recover. Your securities fraud lawyer can help here as well, and if your claim leads to settlement negotiations, your lawyer can negotiate for a favorable settlement on your behalf.

Discuss Your Situation with a Securities Fraud Lawyer in Confidence

Do you need to know more about filing a claim for securities fraud in the United States? If so, we invite you to contact us for a free, no-obligation consultation. To discuss your situation with an experienced securities fraud lawyer at Zamansky LLC in confidence, please call 212-742-1414 or tell us how we can reach you online now.

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“Jake Zamasky and his colleagues represented me in a FINRA arbitration case against a large multinational bank and succeeded in obtaining an award for the full amount of my investment losses. I would highly recommend the Zamansky firm for their experience in securities litigation, their level of detailed research and case preparation, and their ability to effectively fight for what’s right.”

Richard R.

“Throughout my entire case, Jake Zamansky was incredibly responsive and spent time walking me through each step of the process. He is professional and worked with my challenging schedule, even meeting with me nights and on weekends. He knew exactly which turn to take when it came to my case and yet was respectful of any decisions I wanted to make resulting in a positive outcome.”

Donald A.

“Jake Zamansky and his firm represented me in a FINRA arbitration case to recover investment losses. Jake and his team were very professional and worked very hard preparing for trial and then reaching a substantial settlement of our case. I would highly recommend them.”

William E.

“Jake Zamansky represented me in a FINRA arbitration case which allowed me to recover a substantial portion of investment losses. He is truly an expert in this space and I would highly recommend him to those investors who may have been been a victim of investment fraud.”

Chris K.

“Jake and his team did a great job communicating with me throughout the process of my lawsuit. I would recommend him to anyone looking to sue UBS for unethical practices.”

Mike A.
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