Misrepresentations and Omissions

Misrepresentation and omissions are two integral claims that must be substantiated to prove securities fraud. Essentially, securities trading are done in good faith and dealing between clients, financial service providers, companies and the information each entity portrays to the other. To prove fraud, clients must prove a dealer, broker, or company purposely or wantonly misrepresented, or omitted to provide, pertinent information that was relied upon by clients, who suffered losses resulting from the reliance.

Proving Fraud from Misrepresentation

To prove reliance, investment fraud attorneys will look towards direct and indirect evidence. Direct evidence, such as public financial statements and other written claims, is the most reliable. Another method of proving reliance based on errant or omitted information, known as indirect evidence, shows market faith and interest in a given security was influenced by misrepresented information to other parties, which affected a security price, which influenced the victim investors to buy. Proving cases involving omitted evidence, however, do not necessarily need to prove reliance. Instead, the courts look to see if the omitted evidence would have reasonably influenced an investor’s decision-making process, if known. For victims of securities fraud, having an attorney represent your claims is essential. Many times, securities fraud cases become class action suits, as many other investors were mislead in a similar manner.

Getting Legal Help

An attorney can file initial claims for investors, investigate the claims for investors, and ascertain the appropriate legal mediums to resolve disputes. In cases involving brokers, traders, or dealers, virtually all entities require an investor to sign a contract before trading, which states that all disputes will be resolve through arbitration. An attorney can help, even in these unfavorable circumstances as well.