How Much Does it Cost to Hire an Investment Fraud Lawyer?

For victims of investment fraud, hiring an experienced lawyer is essential. Whether defrauded investors need to file claims against their brokerage firms or track down scam artists, they need experienced legal representation in order to effectively assert their legal rights and maximize their chances of a financial recovery.

So, how much does it cost to hire an investment fraud lawyer?

Contingency-Fee Representation for Defrauded Investors in the U.S.

Recently, the U.S. Securities and Exchange Commission (SEC) announced that it plans to host a summit highlighting the need for investor access to legal counsel. In its announcement, the SEC acknowledges that, “[i]nvestors who cannot afford private counsel are significantly disadvantaged in arbitration or litigation with their financial professionals.” However, our firm represents investors on a contingency-fee basis—which means that our clients pay nothing out-of-pocket for our legal representation.

The SEC’s announcement likely focuses on investors whose losses are relatively small. With contingency-fee representation, a lawyer’s legal fees are calculated as a percentage of the client’s recovery. So, if an investor has only lost $10,000, for example, then providing contingency-fee representation won’t be worth it for most lawyers (and paying a lawyer’s hourly rate won’t be feasible for most investors in this scenario).

But, when investors’ losses are substantial, contingency-fee representation is viable for both the lawyer and the investor. An experienced investment fraud lawyer will thoroughly evaluate investors’ claims before deciding whether to provide legal representation. If an investor appears to have a strong claim and the investor’s losses make contingency-fee representation worthwhile, then the lawyer will offer to handle the investor’s claim at no out-of-pocket cost. Conversely, if the investor doesn’t have a viable fraud claim, the lawyer will let the investor know; and, if the investor’s losses are insufficient to justify contingency-fee representation, the lawyer will let the investor know this as well.

Contingency Fee Percentages for Investment Fraud Claims

While there is a certain amount of uniformity, different law firms charge different contingency fee percentages for investment fraud claims. Additionally, in many cases, law firms will determine their contingency fees based on the amount of work involved in helping investors recover their losses. For example, a firm may set its fee at a certain rate if investors’ claims settle without initiating formal legal proceedings, and then the firm may increase its fee at various stages as the amount of work involved in handling the investor’s claim increases. This ensures that the firm’s and its clients’ interests remain aligned throughout the process of seeking to recover clients’ fraudulent investment losses.

Request a Free Consultation with an Investment Fraud Lawyer at Zamansky LLC

At Zamansky LLC, we represent defrauded investors nationwide who need to pursue claims against stockbrokers, investment advisors, scam artists and other entities. If you believe that you may be a victim of investment fraud, we encourage you to contact us promptly for more information. Call 212-742-1414 or contact us online to request a free consultation today.