Breach of Contract

Breach of Contract with Investments

When an investor opens an account with a brokerage firm or bank, the investor typically fills out a new account form. The new account form asks for information regarding the investor’s investment experience, risk tolerance, occupation, financial information, and investment goals and needs. The investment professional should review this information with the investor, as well as any other pertinent facts about the investor’s background prior to making any investment recommendations. This information should be updated by the investment professional as the investor’s financial situation changes. The new account form should be signed by the investor and the investment professional, and then reviewed and signed by the investment professional’s supervisor. 

In an ideal world the investment professional will follow all the steps laid out above and only make recommendations that are suitable for an investor’s need, goals, and risk tolerance. Unfortunately, shortcuts are taken. Investors are routinely recommended investments that do not meet an investor’s stated investment objectives or risk tolerance. Even more alarming, investors are sometimes encouraged by their financial professionals to sign the new account form and allow the financial professional to fill out the rest. 

If your investment professional failed to recommend investments that meet your stated investment objectives and risk tolerance, or filled out the account application without your input, you may have a claim for breach of contract.

Legal Help for Breach of Contract Victims

Gilman Law LLP is a leading securities fraud law firm and is here to help you recover damages for your breach of contract claim. For a FREE  evaluation of your case, please fill out our online form, CALL TOLL FREE (1-888-252-0048) to speak with a breach of contract attorney today.

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