Written by The White Law Group• July 17, 2019• 8:56 pm• Blog, Securities Fraud Articles

LPL Financial Lawsuit Alleges Unsuitable Alternative Investments

LPL Financial lawsuit, Featured by Top Securities Fraud Attorneys

The White Law Group announces the filing of another FINRA Lawsuit against LPL Financial LLC

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

The claim further alleges that LPL Financial LLC unsuitably invested the client in the following high risk alternative investments:

FS Investments Corporation III (FSIC III)
FS Investments Corporation IV (FSIC IV)
Corporate Capital Trust

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

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

It is alleged LPL Financial LLC failed to perform the necessary due diligence on these investments prior to recommending them to this particular 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 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.