Complex Consumer Litigation
& Fraud Lawsuits

Ohio Lawsuits & Legal Rescources

Consumer Protection Law

Consumer protection laws are regulated by the government to protect the interests of consumers. Consumer protection laws exist to ensure fair competition and the free flow of truthful information in the marketplace. Consumer protection laws were created to prevent businesses from engaging in fraud or unfair practices and to provide protection for the weak and gullible.

Here are some ways you may experience consumer fraud:

Investor Losses

Investor losses occur when a company does not reveal data that affects its stock price or when insider trading takes place.  Or they fail to disclose some important information. For instance, let's consider an oil company that fails to disclose the conditions of its pipelines. What if the defendants knew for years that the pipelines were not adequately maintained which in turn created a risk of pipeline leaks and a potential shutdown.

In 2006, 267,000 gallons spilled out of the pipelines in a bay forcing the company to shut down the oil field. After the spill, the defendants assured the public that its corrosion monitoring plan was aggressive and robust but the pipeline leaked again less than six months later.

Is this gross negligence or mere negligence? It's still material failure to disclose resulting in the shareholders bringing suit. Do you have an investor loss lawsuit?

Infamous Investor Losses

Probably the most recent and infamous investor losses are attributed to Bernie Madoff who duped ordinary people out of their modest retirement nest eggs along with million dollar charitable trusts, a Nobel-prize winner, professional sports team owners, banks, and the Hollywood elite. While Madoff makes headlines 24/7, he is by no means responsible for all investor losses.

Here are some ways people are unscrupulously taken advantage of:

Annuities: If approaching retirement or already in retirement, variable annuities are not the right investment tool for you because of the steep penalties for early withdrawal lack of variable annuity liquidity. You may also be told that the principal is guaranteed but that only occurs in the event of your death. How does that help you now? Nevertheless, investment salespeople will invite you to lunch because they make false promises and hefty ongoing commissions when you sign on the dotted line for an annuity. Variable annuities are bad choices for short-term investors. You might not know this but the person who sold you the variable annuity sure did.

Investment fraud is common. Investment fraud is perpetrated by stockbroker malpractice. Here are ways it occurs:

• Investment fraud may be caused by stock churning.
• Investment fraud happens when your stockbroker sells you stocks and mutual funds for which he or she receives hefty commissions but fails to disclose that information to you. An example of this aside from annuities is when large brokerage firms have "preferred families" on investments. Did they disclose they get kickbacks for selling them?
• Investment fraud happens when a stockbroker sells you annuities knowing that you need the money sooner vs. later.
• Investment fraud happens when an unscrupulous fund manager purposely misappropriate your pension funds and 401k to their own personal gains.
• Investment fraud is when your stock broker or insurance agents fails to tell you about all the penalties of early withdrawal.
• Remember if it sounds too good to be true like turning $5,000 into $50,000 in six weeks - this pyramid scheme is investment fraud.
• Investment fraud is when you agree to an investment tool because you are threatened, lied to, confused, and afraid.
• Investment fraud can happen frequently on the Internet through a variety of thinly-veiled scams or through what was purported to be a trusted source like Bernie Madoff to hundreds of his dearest friends.

The stock investment industry is subject to a strict set of standards and regulations that protect investors. A stock fraud lawsuit is one option available to investors who have been harmed in stock fraud. There are many types of stock fraud that can be perpetrated by investment professionals. Securities brokers, dealers, financial advisors, securities corporations, shareholders, and private investors may be charged in a stock fraud lawsuit when they are found responsible for fraudulent dealings.

Do you need an investment fraud attorney to help you discover your legal rights in a stock market fraud lawsuit? If you live in PA, NJ, or WV, contact of counsel law firm of Anapol Schwartz.