A broker who fails to sell a stock when requested by a client may be guilty of failure to execute orders. Financial brokers are legally obligated to follow all instructions from their clients regarding the money the client has invested. Brokers who don’t comply with these requests open themselves up to civil lawsuits from investors.
At Meyer Wilson, we have plenty of experience helping investors who have suffered losses due to their broker failing to sell their stocks when requested. Our award-winning team of stockbroker failure to execute orders lawyers will use every resource at our disposal to help ensure a favorable outcome to your case.
Failure to Sell Stock When Requested Is a Form of Broker Misconduct
If you suffered financial losses after your broker failed to execute a trade you requested, you may have the right to take legal action to recover compensation. Many brokers owe their clients a fiduciary duty to ensure that every move they make with the money invested is in the investor’s best interest.
Brokers must follow any orders they receive from the client regarding how they want their money to be invested. Failing to respect the wishes of a client and make any trades requested may be a form of broker misconduct.
An experienced broker misconduct lawyer can help you file a claim and guide you through every step of the process of recovering the money you need and deserve.
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Broker Defenses Against Failure to Execute Orders Claims
The most common defense a broker is likely to take up if they fail to sell an investor’s stock after receiving a request is that they did not have adequate time to execute the sale. If the stock you requested to sell was falling quickly, and you lost significant money while waiting for your broker to make the trade, you will need evidence to back up your claim.
Records of when you made your request can be critical for showing that your broker had adequate time to complete the transaction yet failed to do so.
Hiring an experienced investment fraud lawyer to help you prove that your broker failed to execute your orders and sell your stock in a reasonable amount of time can be critical.
Pursuing Compensation After a Broker Fails to Sell Your Stock When Requested
When attempting to recover compensation after losing money due to your broker failing to sell your stock when requested, you will likely need to file a Financial Industry Regulatory Authority (FINRA) arbitration claim to recover damages. When you invest your money with a broker, you will sign an investment agreement.
These agreements typically contain a clause stating that any disputes that may arise will need to be settled through FINRA arbitration. Arbitration is an alternative to taking a case to court that simplifies the process and allows investors to recover compensation generally more quickly than would be possible through a lawsuit.
Brokers tend to prefer FINRA arbitration because proceedings are private, with only the final decision of the arbitrator or arbitration panel being made public by the arbitration forum. Meanwhile, a trial could expose them to significant public scrutiny.
Our lawyers are nationwide leaders in investment fraud cases.
Steps in the FINRA Arbitration Process
When pursuing compensation for failure to execute orders through FINRA arbitration, several steps will need to be taken. Steps in the arbitration process include:
- Filing a Statement of Claim
- Building your case
- Selecting arbitrators
- Attending a prehearing conference
- Discovery
- Arguing your case in front of the arbitrator or arbitration panel
Filing a Statement of Claim
The first thing you will need to do to get your case started is to file a Statement of Claim. This document will include all the relevant information about your case and serve as the first impression of your claim for the arbitrator or arbitration panel.
A Statement of Claim is the single most important document in any arbitration case, and, as such, it is critical that you secure the services of an experienced lawyer before filing to ensure the Statement of Claim presents a compelling case.
Building Your Case
After you file your Statement of Claim, your broker will have 45 days to respond. During this time, you and your lawyer will build your case. Your role will be to provide your attorney with any documents or other supporting evidence they can use to help prove your claim.
Selecting Arbitrators
Once FINRA has received your Statement of Claim and the response from your broker, you will select arbitrators for your case. Both you and your broker will be given a matching list of arbitrators with descriptions from which you can strike certain arbitrators you believe may not be fair and impartial and rank the arbitrators that remain in order of preference.
Attending a Prehearing Conference
Your lawyer will attend a prehearing conference where several details about the arbitration proceedings will be discussed, and your hearing date will be set.
Discovery
Discovery is the process of exchanging documentary evidence with the opposition and informing each other of any witnesses you intend to call during the arbitration hearing.
Arguing Your Case in Front of the Arbitrator or Arbitration Panel
Finally, your lawyer will argue your case at your FINRA arbitration hearing, where they will attempt to convince the arbitrator or arbitration panel to rule in your favor.
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Get Help from an Experienced Broker Misconduct Lawyer Today
Hiring an experienced attorney is the best way to improve your chances of getting the money you need and deserve after suffering financial losses caused by your broker failing to sell your stock when requested. At Meyer Wilson, our experienced team has secured over $350 million for those we represent.
Contact us by phone or through our website to set up your free initial case review today.
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