Coral Gables, Florida (PRWEB) May 10, 2011
The Securities Law Firm of Tramont Guerra & Nunez, P.A. (TGN) announces a recent arbitration award, FINRA Case No. 09-06884, against Wedbush Morgan Securities, Inc. The securities arbitration panel heard testimony for four days in San Francisco before an award in the amount of $750,000 was made in favor of the Claimants, who were represented by Andrew Tramont. The Claimant alleged causes of action related to Claimant’s concentrated position in Pacific Capital Bancorp stock, including: breach of fiduciary duty; unsuitable investment advice; failure to diversify/securities concentration; failure to recommend risk management strategies; negligence; failure to supervise; and breach of contract. Investors who suffered losses in bank holding company stock should consider what recourse is available to recover their investment losses in stock held in full-service brokerage accounts. The Financial Industry Regulatory Authority, (FINRA) is a self regulating organization with sales practice rules and regulations that governs the securities industry’s conduct in order to safeguard the investing public.
According to TGN, many investors in bank holding company stock represent a long term holding acquired through investment, inheritance or as an employee of the company. Full-service brokerage firms are obligated to give, and investors are entitled to rely upon, brokerage firms for competent, suitable investment advice concerning risk management strategies for concentrated stock positions. Brokerage firms are required to supervise the activities in brokerage accounts, and losses may be attributed to the failure to adequately supervise the stockbroker and the brokerage account. Recommendations of unsuitable investments and/or maintaining unprotected concentrated stock positions are both causes of action that may be available to investors against their full-service brokerage firm in an individual securities arbitration claim filed with FINRA.
The Securities Law Firm of Tramont Guerra & Nunez, PA, is a nationally recognized, Martindale Hubbell “AV” rated securities law firm. To request a confidential consultation from a TGN attorney to determine whether you have a viable individual securities arbitration claim for investment losses that exceed $250,000 from a full service brokerage account, contact us on our website. To speak directly with an attorney, call (800) 578-0137 and ask for David Chacin, Esquire.