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Securities Litigation Lawyers

Investors lose millions of dollars every year to securities fraud, mismanagement, and negligence. Many individuals who invest their hard-earned cash become victims of fraud at the hands of brokers and institutions they thought they could trust.

Even after such a breach of trust, all isn’t lost. You can speak to securities litigation law firms with extensive experience helping investors like you recover their cash in damages in derivative and fiduciary lawsuits as well as securities class actions.

When it comes to securities-related litigation, you need the help of a legal team that offers results-driven representation like Nix Patterson. Legal counsel will be important in securing timely and favorable results in high-stakes securities disputes.

Our lawyers have had significant success in securities-related litigation. For example, Nix Patterson and its co-counsel obtained a $280 million settlement with Bank of New York Mellon (“BNY”) on behalf of BNY’s securities lending clients, alleging that BNY negligently invested its clients’ funds in medium-term notes of Sigma Finance, Inc. in violation of BNY’s fiduciary duties and in breach of its securities lending agreements.

In addition, we reached an $80 million settlement on behalf of investors in MoneyGram International, Inc. on allegations that MoneyGram made false and misleading statements surrounding the quality and nature of asset-backed securities held in MoneyGram’s investment portfolio.

Also, in one of the earliest cases involving “stock options backdating,” Nix Patterson reached a $160 million settlement with Brocade Communications Systems — marking close to a 100% recovery for the class.

What Is Securities Fraud?

Securities fraud, also known as investment fraud or stock fraud, is a white-collar crime that involves the “misrepresentation or omission of information to induce investors into trading securities.”

Securities fraud is completely different from investment losses (i.e., losing cash through normal trading activities). Securities fraud involves bad acts on the part of a third party. These bad acts include negligence, mismanagement, and fraud. Liable third parties may include your broker, the board of directors of a company or fund, or a trading platform. When these third parties behave dishonestly with your investment, they should be held accountable. When they violate securities laws, victims may turn to securities litigation attorneys to file lawsuits against the negligent parties. Nix Patterson’s securities fraud attorneys know how to hold them accountable.

The Federal Bureau of Investigations (FBI) describes securities fraud as “a wide range of illegal activities, all of which involve the deception of investors or the manipulation of financial markets.”

This type of fraud may include:

  • Ponzi schemes
  • Pyramid schemes
  • Hedge fund-related fraud
  • Broker embezzlement
  • High-yield investment fraud
  • Late day trading
  • Foreign current fraud

Take, for example, a company that misleads investors about the real state of its financial health. The management may falsify financial statements and lure investors who rely on such documentation to make informed investment decisions. As was the case in our litigation against SeaWorld.

The case alleged that SeaWorld overinflated the effects the documentary Blackfish was having on its business. The matter was litigated successfully, and we received a $65 million settlement on behalf of our client, the Arkansas Public Employees Retirement System.

Directors may also lie about their company’s revenue and after-tax profit. They may also claim the U.S. Food and Drug Administration has approved a drug, which may be a lie. Others may claim to have patented a product or software in order to mislead investors. All of these are forms of securities fraud.

Overall, the Securities Exchange Act requires parties like investment banks, brokerage firms, financial advisors, and stockbrokers to act appropriately when handling investor funds. Brokerage firms must also comply with rules set by the Financial Industry Regulatory Authority (FINRA). This is a non-governmental, self-regulatory organization for the brokerage industry.

Nix Patterson financial resources and the diversity of our practice areas makes us uniquely positioned for securities litigation and portfolio monitoring. 

How Do I Know if I’m a Victim?

If you suffered investment losses, the main questions on your mind might be:

  • “Am I a victim of financial fraud?
  • Am I a victim of securities fraud?

These are complicated questions, as an investment loss may not rise to the level of fraud on its own. In fact, in any type of securities investment, there is no such thing as a guaranteed investment.

However, at the same time, companies dealing with securities must protect the best interests of their clients. They must avoid self-dealing, fraudulent statements, misrepresentations, and negligent handling of their clients’ funds.

Nix Patterson’s securities fraud lawyers can help you answer these questions.

A securities fraud lawyer may be your best resource if you believe you are a victim of fraud. Our attorneys will assess your case and help you determine if you have a valid legal claim.

Ask  yourself the following questions:

  • Was I forced into an investment I didn’t fully understand?
  • Did I lose way more cash than I was told was possible?
  • Was I told my investment was “guaranteed” or a “guarantee”?
  • Are there any unexplained transactions on my accounts?
  • Did I lose far more money after being told I was a “conservative investor”?
  • Do I believe I was given inaccurate or false information?

If your answer is “yes” to any of the above questions, you may be a victim of securities fraud. At this point, it’s advisable to get in touch with a lawyer.

How Can a Securities Litigation Lawyer Help Me?

If you have lost cash due to the wrongdoings of your broker, financial analyst, or the board of a company you invested in, you may file a claim seeking compensation for your losses. To receive compensation, you must prove that the defendant’s actions or omissions caused the loss.

A securities litigation lawyer can offer sound legal representation in cases involving investment losses due to misrepresentation, fraud, or other securities-related disputes. An experienced attorney may:

  • Determine the validity of your case
  • Gather necessary evidence
  • File SEC complaints
  • Navigate the FINRA regulatory process and securities law
  • Conduct investigations to determine broker misconduct
  • Take action against negligent brokerage firms or brokers
  • Help with the FINRA arbitration process
  • Calculate your damages
  • Represent you in in-court litigation

Are You a Victim of Securities Fraud? Call Nix Patterson Today.

Nix Patterson is one of the nation’s leading firms in the representation of public and private investors in securities fraud and corporate governance litigation. Our clients know our firm focuses on the quality of our representation and the strength of our cases — not merely the number of cases we file.

This approach stands in stark contrast to many firms whose business is dependent upon securities fraud litigation. These firms encourage their clients to become involved in numerous securities fraud cases simply to improve their own firm’s bottom line. This sets us apart from our peers.

There are less than a handful of firms in the country that possess the trial experience and financial resources of Nix Patterson. As a result, our institutional investor clients receive a truly unique level of representation.

The bottom line is this: each of our clients knows that we will only recommend litigation when it is unequivocally in the client’s best interest. When our clients must turn to litigation, they know they can trust Nix Patterson to handle the case appropriately. Because we are a firm of trial attorneys with diverse experience, our opponents in securities and corporate governance cases know that we can and will take them to trial if necessary.

And since securities law is a complex and specialized area of law, the average investor may find it hard to understand and navigate the legal process. At Nix Patterson, we know how elusive these laws may seem to investors, and that’s why we are here to protect you from unscrupulous or fraudulent practices in the securities sector.

If you believe you’re a victim of a financial crime, contact the securities litigation lawyers at Nix Patterson​​ today at 512-328-5333 for a free consultation, or get in touch online. Our attorneys represent investors all over the U.S. in all types of securities-related disputes.


Nix Patterson only works on a contingency fee basis. Our clients pay us nothing unless we win. Schedule a free consultation today. 

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