Abogados de Securities Law

Securities Law Lawyers in the United States

Securities law governs the buying, selling, and trading of financial instruments like stocks, bonds, and derivatives. When investors lose money due to fraud, misrepresentation, or broker misconduct, securities lawyers help them recover those losses. The SEC receives thousands of complaints each year, and private actions account for billions in recovered funds annually.

What Securities Law Covers

Securities fraud is the most common claim in this area. It includes schemes like Ponzi operations, insider trading, churning of accounts, and material misrepresentation in offering documents. Federal laws like the Securities Act of 1933 and the Securities Exchange Act of 1934 form the backbone of investor protection.

Securities law also covers regulatory compliance, SEC investigations, and disputes between investors and their broker-dealers. Whistleblower claims under the Dodd-Frank Act fall here too — the SEC has awarded over $1.9 billion to whistleblowers since the program began in 2011.

When to Hire a Securities Lawyer

• Your broker made unauthorized trades or excessively traded your account (churning)
• You lost money based on false or misleading investment information
• You received a Wells notice or are facing an SEC enforcement action
• A financial advisor recommended unsuitable investments that didn't match your risk profile
• You have knowledge of securities violations and want to file a whistleblower claim

How the Process Works

Most investor disputes go through FINRA arbitration rather than traditional court. FINRA arbitration typically resolves within 12 to 16 months from filing. A panel of arbitrators hears evidence from both sides and issues a binding decision.

SEC enforcement matters follow a different path. The agency investigates, issues subpoenas, and may bring administrative proceedings or file suit in federal court. For whistleblower claims, the SEC reviews tips confidentially and may award between 10% and 30% of sanctions collected over $1 million.

How Investor Compensation Is Calculated

• Out-of-pocket losses — the difference between what you paid and the actual value of the security at the time of the fraud
• Benefit-of-the-bargain damages — the difference between what you were promised the investment was worth and its actual value
• Lost opportunity costs, measuring what your money would have earned in a suitable investment
• Disgorgement of profits the wrongdoer gained from the illegal conduct
• Interest, attorneys' fees, and punitive damages in cases involving willful misconduct

Frequently Asked Questions

How long do I have to file a securities fraud claim?

Federal securities fraud claims generally must be filed within two years of discovering the fraud and no more than five years after the violation occurred. FINRA arbitration claims have a six-year eligibility window. State statutes of limitations vary, so acting quickly protects your ability to recover.

Can I recover losses from a bad investment?

Not every losing investment qualifies for recovery. You need to show that the loss resulted from fraud, misrepresentation, or a breach of fiduciary duty — not just normal market risk. If your broker recommended investments that were clearly unsuitable for your financial situation, you likely have a valid claim worth pursuing.