Without investment fraud litigation, large corporate defendants would be able to cause small amounts of financial harm over a large group of investors without any risk of monetary penalty.
Securities fraud is a broad term, and is also known as stock fraud and investment fraud. In short, securities fraud is a deceptive practice in the stock or commodities markets that encourages investors to make purchases or sales on false information, frequently resulting in investment losses. Manipulating financial reports and insider trading are common forms. Other types may include:
Securities and investment fraud is very common and some estimates say up $40 Billion is lost to financial fraud activity each year in the United States.
All individual investors should be very careful and only invest with persons and organizations that are trusted and thoroughly studied. Older persons are at particular risk with investment fraud schemes, and should be especially careful to double check any potential investment with a professional advisor.
Investors generally are risking monetary losses when investing in certain financial instruments, however, if there was gross financial negligence involved, an investor may have legal recourse to recover some of those losses. Any victim of financial fraud, financial advisor negligence, shareholder oppression, or retirement plan mismanagement should contact an attorney to discuss your options.
The U.S. Securities and Exchange Commission (SEC) is an independent agency of the United States federal government responsible for enforcing securities laws, proposing securities rules, and regulating the securities industry, including the nation’s stock and options exchanges.
The law is clear that companies must be as forthright as possible with shareholders and investors, and any financial deception can be met with class action litigation. Hiding declining sales, for example, is illegal, and lawsuits have been filed when a company attempts to sugarcoat their balance sheets or fail to disclose important news related to current and future sales.
In March 2021, Illumina agreed to a securities class action settlement related to misleading investors about profit and sales.
The lawsuit alleged that Illumina and certain individuals failed to disclose that the company had been experiencing a decline in sales.
Filing financial fraud lawsuits can be a complex and can carry monetary sanctions if proper legal course is not followed. The Lyon Firm is dedicated to assisting investors and plaintiffs work toward a financial solution to assist in compensating for investment and shareholder losses.
We work with law firms across the country to provide the most resources possible and to build your case into a valuable settlement. The current legal environment is favorable for investors involved in securities fraud and financial negligence claims.