Tramont Guerra & Nunez, PA Files $2.5 Million Securities Arbitration Claim against Wedbush Morgan Securities

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During the financial banking system collapse, Claimant’s retirement portfolio declined in excess of $2.5 million, resulting in the loss of shares acquired as a founding member of Pacific Capital Bancorp. At the time, the stock was held with Wedbush Morgan, a regional broker dealer that was a market maker in over 500 community banks, including Pacific Capital Bancorp.

The Securities Law Firm of Tramont Guerra & Nunez, PA announces the recent filing of a securities arbitration claim on behalf of a retired investor, with the Financial Industry Regulatory Authority (FINRA), Case No. 10-01700, against Wedbush Morgan Securities, Inc. (Wedbush Morgan). During the financial banking system collapse, the Claimant’s retirement portfolio declined in excess of $2.5 million. The securities arbitration claim alleges that Wedbush Morgan was a market marker for over 500 community bank stocks throughout the U.S. which placed the brokerage firm and its representative, Lisa Ann Gallo, in a unique position with information that was relied upon by the Claimant. The claim further alleges Wedbush Morgan failed to meet the duties they owed to the Claimant including, but not limited to recommending suitable investment strategies and giving full disclosure of all material information regarding the risk associated with a concentrated portfolio and disclosure of risk management strategies available to mitigate the risks of securities concentration.

The FINRA sales practice rules and regulations are promulgated through member firm internal compliance procedures that are established to protect investors from investment losses that are the direct result of the violation of these rules. In this instance, Claimant did not understand the risks associated with securities concentration in the banking sector of the economy. Wedbush Morgan is required to supervise the handling of client accounts to assure compliance with securities industry standards of handling client accounts. This arbitration claim filed with FINRA seeks to recover losses stemming from the violation of these FINRA sales practice rules and regulations. Brokerage firms are obligated to give, and investors are entitled to rely upon, brokerage firms for competent, suitable investment advice in accordance with FINRA. 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 (888) 834-2171 and ask for Ben Fernandez, Esquire.

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