Waddell & Reed Financial, Inc., through its subsidiaries, provides investment management and financial planning services to clients throughout the United States.
Founded in 1937, Waddell & Reed is one of the oldest financial planning establishments in the U.S. with its headquarters located in Overland Park, Kansas. A publicly held corporation (NYSE: WDR), Waddell & Reed distributes investment products through independent financial advisors, broker-dealers, registered investment advisers, and various retirement platforms.
A securities brokerage firm licensed by FINRA, Waddell & Reed has a legal duty to supervise its brokers and its brokers’ recommendations to clients to ensure compliance with and prevent violations of the rules of the security industry. When an individual broker is negligent or acts in an unlawful manner against the interests of the client and that client suffers damages because of such wrongdoing, the firm may be held liable for the investor’s losses.
Waddell & Reed, Inc. Investment & Broker Misconduct
Like many other investment firms like it, Waddell & Reed has some history of investment and broker misconduct. In 2004, the NASD charged Waddell & Reed with suitability violations regarding thousands of variable annuity exchanges. According to the complaint, Waddell & Reed recommended 6,700 variable annuity exchanges without first determining whether the investments were suitable for the investors.
Waddell & Reed made a profit – about $37 million – while investors lost millions of dollars. This is a prime example of misconduct in the form of brokers acting in their best interests, rather than the best interests of their clients. In 2005, NASD announced that Waddell & Reed had agreed to pay a $5 million fine as well as $11 million in restitution to investors who were harmed by the unsuitable investments.
Contact Meyer Wilson to discuss your case against Waddell & Reed, Inc.
Waddell & Reed brokers already have a history of acting in their own interests above the interests of investors. Meyer Wilson investment loss attorneys have the resources and experience to hold them accountable for fraud or negligence. Our lawyers can aggressively pursue claims founded on careful and thorough investigation, either in federal and state courts or in arbitration with FINRA, AAA, or privately. Because Meyer Wilson practices solely in securities fraud and arbitration, our insight is specifically honed to your needs as a victim of investment fraud. Our firm has recovered hundreds of millions of dollars for our clients in our recent history—we may be able to help you.