Investor and Securities Fraud Attorneys & Lawsuits in Atlanta, Georgia
Whenever a person invests money in a business or other financial venture, whether as a passive investor or active participant, he or she is owed certain legal duties of disclosure and honesty. When a company, promoter, general partner or other agent provides erroneous or false information to induce someone to invest money, and some or all of the investment is lost as a result, the investor may have common law claims for fraud or negligent misrepresentation. In addition, state and federal laws governing certain types of investments provide statutory remedies for those who have been the victims of violations of those laws by companies seeking and individuals promoting investments. Those laws contain strict time deadlines that must be followed for investors to take advantage of statutory remedies. Under Georgia and federal securities laws, a statutory fraud claim must generally be brought within two (2) years of when a reasonably diligent investor would have discovered the violation (fraud or misrepresentation, sale of unregistered non-exempt security, etc.)
A special category of investment fraud cases involves brokers and dealers who manage customer accounts. Such cases may involve claims of securities and other types of fraud, churning, unsuitability, unauthorized trading, breach of fiduciary duty, negligence, registration violations, and other causes of action. Often, these claims are handled in special arbitration proceedings under a customer agreement between an investor and brokerage firm.
Written and verbal misrepresentations
Many investments involve written documents such as an investment agreement between the investor and company, a private placement memorandum for investments exempt from registration requirements, limited partnership documents (typically used for real estate investments), and others. A company or issuer of securities will make representations and disclosures about the business, proposed investment and risk factors of the investment in these documents. If the company or issuer makes materially false or misleading statements or provides incomplete or inadequate information which the investor reasonably relies on in deciding to invest, and the investor suffers a loss as a result, an investment or securities fraud lawsuit might be a viable option for the investor to seek to recover his investment.
False or misleading representations made outside of investment documents may also form the basis of an investment fraud or negligent misrepresentation case. Sometimes representations are made only verbally to an investor, while in other cases there might be written evidence of the representations such as emails, text messages, etc. In either case, an investor must credibly show and convince a judge or jury that false or misleading representations were made that were untrue when made, and that the investor reasonably relied upon them in deciding to invest.
Investment & securities fraud lawsuits and remedies
Typically, an investor will seek to rescind an investment based on fraud and sue to recover damages. Depending on the type of investment and applicable laws and legal theories, an investment fraud victim may be entitled to recover the full or partial value of his initial investment, punitive damages (for egregious conduct), and attorney fees and other litigation expenses. In cases brought under federal or state RICO or racketeering statutes, an investor can seek to recover treble damages, or three times actual damages, as well.
The laws regarding investment and securities fraud are complex and require specialized legal knowledge and expertise to properly understand and apply to the facts of a particular case, carefully plead a detailed complaint that will withstand a motion to dismiss, litigate a claim through discovery and the pretrial process, and prepare a case for trial. Investment fraud cases can involve many difficult legal issues, including reliance, fraud on the market, investment timing, causation and other issues. In addition, there are special pleading and evidentiary requirements that must be considered in preparing and prosecuting an investment fraud lawsuit, particularly if the claim is litigated in federal court. It is crucial for an investor to consult with a qualified investment or securities fraud attorney as early as possible to determine if he or she has a viable claim, especially in light of the time limitations imposed under federal and Georgia law.
The Atlanta, Georgia investment and securities fraud attorneys of Brownstein & Nguyen are experienced in complex securities and investor fraud litigation, having handled such cases in both state and federal court. If you believe you have been the victim of investment fraud, our attorneys will meet with you, review your documents and discuss your legal options with you. Our attorneys have a proven track record, both in and out of the courtroom, of achieving the best possible results for our clients, including in investment and securities fraud cases. Click here to view examples of cases we have handled and notable results, and click here to see what our clients say about our experience and dedication in handling their claims.
If you, a family member or friend has lost money on an investment due to fraud, inadequate disclosures or misrepresentations by a company, promoter, general partner or agent, call or contact our experienced investment and securities fraud litigation attorneys in Atlantatoday for a free consultation.
