Misrepresentations and Omissions

Misrepresentations and Omissions in Securities Arbitration

When investing, accurate and complete information is crucial. Brokers and financial advisors have an obligation to provide investors with all material facts necessary to make informed decisions. Unfortunately, misrepresentations and omissions—whether intentional or negligent—are common forms of misconduct leading to significant financial losses. At Iorio Law PLLC, we are dedicated to holding brokers and brokerage firms accountable for these harmful practices.

Understanding Misrepresentations and Omissions

Misrepresentations occur when brokers or financial advisors provide investors with false or misleading information about an investment. Omissions happen when critical information about an investment is intentionally withheld or inadvertently overlooked, causing investors to make decisions based on incomplete facts.

Intentional vs. Negligent Misrepresentations and Omissions

Misrepresentations and omissions can be categorized as either intentional or negligent:

• Intentional Misrepresentations or Omissions (Fraud): When brokers or brokerage firms deliberately provide false information or knowingly omit crucial details to persuade investors into unsuitable investments, it constitutes securities fraud.
• Negligent Misrepresentations or Omissions: Even without malicious intent, brokers can still harm investors by carelessly misrepresenting investment risks or failing to disclose essential details. While not classified as fraud, these negligent actions are equally damaging and actionable.

Common Examples of Misrepresentations and Omissions

Investors should be alert for the following examples of misrepresentations and omissions:

• Downplaying Risks: Brokers minimizing or ignoring significant investment risks.
• False Performance Guarantees: Assuring investors of guaranteed returns or profits, which is inherently misleading.
• Hidden Fees and Commissions: Failing to disclose substantial fees or commissions that significantly impact investment returns.
• Conflicts of Interest: Omitting or misrepresenting relationships or arrangements that benefit brokers at the investors’ expense.
• Incomplete Product Descriptions: Not fully explaining complex financial products, such as private placements, non-traded REITs, structured products, or high-risk bonds.
• Incomplete Disclosure of Material Risks: Not adequately explaining the unique material risks for complex financial securities, such as alternative investments, private placements, non-traded REITs, or structured products.
• Misrepresenting Information About the Issuer: Misrepresenting Information About the Issuer: Providing false or misleading details about the financial health, business prospects, or management of the company issuing the stock or bond.

Legal Remedies and State Blue Sky Laws

Investors harmed by misrepresentations or omissions may have FINRA arbitration claims under various legal frameworks, including federal securities laws. Additionally, each state has its own “Blue Sky” laws designed to protect investors from fraudulent securities practices. Depending on the state where the transaction occurred, brokers and brokerage firms may face liability under these laws, potentially allowing investors to recover:

• Lost capital
• Interest and penalties
• Attorneys’ fees and litigation costs

How Iorio Law PLLC Can Help

At Iorio Law PLLC, we have extensive experience representing investors nationwide who have suffered financial losses due to misrepresentations and omissions by brokers and financial advisors. Our founder, August M. Iorio, has successfully recovered nearly $100 million for clients harmed by investment fraud and broker negligence.

Our firm will:

• Conduct a thorough investigation of your claim.
• Identify whether the misrepresentation or omission was intentional (fraudulent) or negligent.
• Pursue recovery through FINRA arbitration or state Blue Sky law claims.
• Seek maximum compensation, including the recovery of attorneys’ fees and costs when applicable.

Why Choose Iorio Law PLLC

• Nationwide Representation: Serving investors across the United States.
• Proven Results: Nearly $100 million recovered for harmed investors.
• Client-Centered Approach: Personalized, dedicated representation tailored to your unique circumstances.
• Contingency Fee Basis: You only pay a legal fee if we recover money for you.

Take Action to Recover Your Losses

You’re entitled to make an informed decision when investing. Misrepresentations and omissions can devastate your financial stability, but you are not alone. If you believe that your broker or financial advisor provided false or incomplete information, contact Iorio Law PLLC today for a free, confidential consultation.

📞 Call: (646) 330-4624
📧 Email: info@iorio.law
📍 Location: One World Trade Center, 85th Floor, New York, NY 10007

Disclaimer: This content is for informational purposes only and does not constitute legal advice. Past results do not guarantee future outcomes. Each case is unique; consult an attorney for advice tailored to your specific situation.