Written by The White Law Group• March 21, 2022• 1:35 pm• Blog, Securities Fraud Articles

FINRA Lawsuit filed against Stifel, Nicolaus & Company, Inc.

The White Law Group announces the filing of a FINRA Lawsuit against Stifel, Nicolaus & Company, Inc.

The White Law Group announces filing of a FINRA Arbitration lawsuit today. The claim, submitted on behalf of a Linthicum, Maryland family, alleges claims for violation of common law fraud, breach of fiduciary duty, negligence, and negligent supervision.

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The claim further alleges the firm unsuitably invested its clients in the following high-risk pharmaceutical and biotech investments, among others:

Acadia Pharmaceutical, Inc.
Bristol-Myers Squibb Company
Cempra, Inc.
Kite Pharmaceutical. Inc.
MacroGenics, Inc.
Newlink Genetics Corporation
Sarepta Therapeutics, Inc.
VTV Therapeutics, Inc.
Verastem, Inc.

It is further alleged that the financial advisor that was involved with the accounts at issue is Kenneth Blumberg (CRD#: 1585520). According to the Financial Industry Regulatory Authority, Blumberg has been the broker of record for at least four (4) customer disputes. Allegations include unsuitable investments, unauthorized trading, churning or excessive trading and professional negligence, misrepresentation, among others.

The FINRA claim seeks damages between $100,000.01 and $500,000.

It is alleged that Stifel, Nicolaus & Company, Inc. failed to perform the necessary due diligence on these investments prior to recommending them to these particular investors.

Before recommending an investment, a broker-dealer has a fiduciary duty to adequately disclose the risks involved in the investment and to perform the necessary due diligence to determine whether the investment is suitable for the investor.

According to D. Daxton White, managing partner of The White Law Group, “It is unfortunate, but we believe that many more investors have suffered devastating losses due to the broker-dealer’s failure to supervise and don’t realize they have recovery options.”

“Brokerage firms are required to supervise their advisors to ensure that they are complying with FINRA rules. If it can be determined that the financial advisor violated FINRA rules and the employers failed to adequately supervise him, these firms can be held responsible for any resulting losses in a FINRA arbitration claim.”

FINRA Dispute Resolution to Recover Financial Losses

FINRA Dispute Resolution is an arbitration venue for investors with claims against their brokerage firm or financial professional. ?It provides investors with an opportunity to attempt to recoup their investment losses without filing such claims in court.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington.