What Causes Investment Losses—and When You Need a Securities Lawyer

Investment losses can happen for many reasons. But when they result from fraud, negligence, or breach of fiduciary duty, you may be entitled to financial recovery. Our experienced securities lawyers and investment loss lawyers investigate misconduct in four key areas:

1. Financial Advisor Misconduct

Many investment losses begin with the very person who was supposed to protect your wealth: your financial advisor. You may have a claim if your advisor:

Recommended unsuitable investments
Failed to diversify your portfolio
Did not disclose material risks
Churned your account to generate commissions
Operated under undisclosed conflicts of interest
Neglected to monitor or adjust your investment strategy

These red flags often indicate violations of securities law. Our investment loss lawyers know how to uncover these patterns and hold the responsible parties accountable.

2. ERISA Violations & Retirement Fund Mismanagement

If your losses occurred in a 401(k), 403(b), IRA, pension, or other managed retirement account, they may be governed by ERISA—a powerful federal law that imposes strict fiduciary obligations on plan administrators and advisors.

You may need a securities lawyer if:

Your plan fiduciary invested in high-fee or poorly performing funds
Your retirement assets were concentrated or not properly diversified
You were steered into proprietary or self-serving products
Your advisor failed to act solely in your best interest

ERISA violations are complex, but they are legally actionable. Our team of securities fraud lawyers and investment loss attorneys can determine whether your retirement savings were mishandled—and whether you’re entitled to recovery.

3. Securities Fraud and Corporate Deception

Sometimes the investment product itself is the problem. If a public company or issuer engaged in misconduct, and you relied on their representations, your losses may stem from securities fraud. Common examples include:

False or misleading financial statements
Accounting irregularities or fraudulent restatements
Insider trading or pump-and-dump schemes
Material omissions during offerings, earnings calls, or filings

Our securities fraud lawyers are trained to investigate market deception, trace liability, and initiate action against corporations and their officers.

4. Board of Directors’ Breach of Duty

Corporate boards are entrusted with safeguarding shareholder value. When directors fail to exercise reasonable oversight or act with integrity, they may be personally liable. You may have a claim if the board:

Ignored obvious red flags of internal misconduct
Failed to supervise reckless or unethical executives
Put personal or corporate gain ahead of shareholder interests

Our investment loss lawyers evaluate director conduct to determine whether a derivative action or breach of fiduciary duty claim is warranted.

Free Consultation Intake Form

To help us understand how we can serve you best, please complete the brief intake form below. All information is strictly confidential and used solely to evaluate your matter.

302 276 8514

info@equaljusticesolutions.org

Name

Phone Number

Brief Description of Your Situation: (Tell us what happened in your own words)

Approximate Amount Lost: (If you’re unsure, please estimate)

Who Do You Believe Is Responsible for the Loss? (e.g., financial advisor, brokerage firm, investment firm, corporate board)

Why Do You Believe They Are Responsible? (Describe the misconduct or failure that caused your loss)

Were Your Funds Invested in a Managed Retirement Account (e.g., 401(k), 403(b), IRA, Pension)?

Do You Intend to Request Consideration for the Pro Bono or Sliding Scale Program?