Circumstances That Lead To Securities Litigation
From a financial standpoint, securities fraud is a particularly devastating form of fraud. All types of fraud have the potential to be financially damaging of course, but the effects of securities fraud can be especially long lasting and considerable.
Securities fraud is also called stock fraud or investment fraud, but the basic premise is the same. This type of crime involves falsifying information in order to convince potential victims to purchase stocks or sell off stocks that they already own. In almost all cases, securities fraud results in the loss of stocks, and even the victim may be in violation of securities laws.
Forms of securities fraud
Some forms of securities fraud involve direct embezzlement by stockbrokers assigned to manage the investments. These types of crimes may also be committed via the manipulation of stocks, intentionally making erroneous statements on financial reports, and misleading auditors. Securities fraud can also take on the form of various illegal activities, such as insider trading and other activities performed on the trading floor.
The victims of securities fraud are generally inexperienced investors that are easily convinced to enter into shady investment “opportunities”. These people usually do not have the ability, knowledge, or experience to disregard risky investments. In most cases, these would be investors are also not in a financially favorable position to less their capital, which makes securities fraud even more devastating.
Securities fraud can occur almost anywhere in the world of course, but the United States is particularly fertile ground for such illegal activities, due to the much larger market and high number of willing investors. With the sizeable disposal income and savings of the middle class, they are particularly prone to falling for securities fraud, especially if they are relatively inexperienced and looking for an investment opportunity.
Financial toll of securities fraud
It has been estimated that the amount of money lost to securities fraud in the United States ranges from $10 to 40 billion every year. Of that amount, the Securities Investor Protection Corporation estimates that microcap stock fraud accounts for anywhere from $1 to 3 billion. Because of these high figures, securities fraud can have a potentially damaging effect on securities and commodities trading.
The number of class-action lawsuits involving securities fraud increased by as much as 43% in the period from 2006 to 2007. This high number can be traced to several factors, including the backdating and subprime incidents that took place in 2006 and 2007 respectively. Despite the number of securities fraud related lawsuits however, cases that were actually filed remained lower than the average throughout history.
Some analysts attribute the increase in securities fraud to the popularity of the Internet, which provides criminals with a seemingly endless supply of new victims. The market also went through a dramatic period of growth during the 1990s, which resulted in a significant increase in potential victims.
More recently, securities fraud has taken on a more subtle and insidious tone, with the introduction of more complex investment vehicles. Fraudsters are also turning to overseas investment markets in search of new victims.
If you have been the victim of securities fraud, you may be eligible to file a lawsuit against the individuals or company responsible. It is absolutely important to keep careful records of all your transactions and to seek the best legal representation you can afford. Securities litigation can be a costly and long drawn out process, so you will want to make sure that you are adequately protected. With the help of a law firm that has sufficient experience litigating cases of securities fraud, you will be in a much better position to get compensation for any losses that you may have incurred.
Any leading whistleblower law firm tackling the tens of billions of dollars stolen from the
FThe Anti-Kickback Statute, 42 U.S.C. § 1320a-7b(b) (the “AKS”), prohibits the payment of kickbacks in any
The False Claim Act, also referred to as the “Lincoln Law,” is a very well-known
The Small Business Administration (“SBA”) recently announced that it has identified over $80 billion in
The Health Insurance Portability and Accountability Act, commonly known as HIPAA, is intended to protect
100 Million Dollar Settlement Fund for Women Injured by a New Birth Control Product
Jason T. Brown was the first attorney in the country to file a battery of cases on behalf of women who sustained blood clots, such as deep vein thrombosis, pulmonary embolisms, strokes and death from a new Birth control Product. Jason T. Brown’s prior firm was on the PSC (Plaintiff Steering Committee) and served as liaison counsel in the state mass tort action. The firm is no longer accepting new cases.
Tens of Millions in Settlements for Mass Tort Injuries and Class Actions
$7 Million Plus Settlement for Consumer Fraud
$7 Million Dollar Commercial Litigation Settlement
Millions in Settlements for Women Injured by New Generation Hormonal Product
Women who sustained blood clots from a new Generation Hormonal Product received and continue to receive compensation for their injuries. Compensable injuries include Pulmonary Embolisms (PE), Deep-Vein Thrombosis (DVT), Strokes and Death. The firm is still investigating and accepting cases.
Nationwide $3.5 Million Settlement for Wage & Hour Class Action Case
Case brought on behalf of at home call center workers who were not paid for all their time worked including boot up time, technical time and other time. Workers were told by the company that boot up time which lasted 15 minutes or more was not paid because it was considered their commute to work. Fair Labor Standards Act (FLSA).
$3.2 Million Settlement for Wage & Hour Class Action Case
Case brought on behalf of workers who were misclassified as salaried exempt from overtime. The employer led employees to believe that they had to work unlimited hours over 40 without overtime compensation even though based on their job duties it was alleged they were entitled to overtime pay.
$2.4 Million Dollar Settlement for Wage & Hour Class Action
Lawsuit was brought as a class action on behalf of workers who worked in excess of 40 hours a week and were not paid overtime. The employer was forcing them to work “off the clock” for those hours and failed to pay proper overtime compensation.
$2 Million Dollar Settlement for False Claims Act (Whistleblower Case)
“$2 Million Dollar False Claims Act (FCA) Settlement – Unnecessary Services”
A case against GenomeDx was brought alleging violations of the False Claims Act (FCA) and the California Insurance Claims Fraud Prevention Act regarding unnecessary services such as the testing of tissues that did not need to be tested. The case resulted in a $350,000 whistleblower award.
$2 Million Dollar Settlement for Truck Accident Victim
Our firm was Of Counsel to a serious truck accident case involving a trucking accident with multiple injuries.
Nationwide $1.3 Million Judgment against Future Income Payments and Scott Kohn for Consumer Fraud
Scott Kohn and Future Income Payments conspired to defraud veterans out of their hard earned pensions by offering them loans at loanshark rates and claiming it was a “purchase” not a loan.
$1.7 Million Dollar Settlement for Wage & Hour Case
Misclassified employees under the FLSA were not paid overtime for hours worked in excess of 40. Due to a confidentiality agreement specific details are intentionally omitted.
Judgment with Maximum Damages for Employment Litigation
Judgment for misclassification under the FLSA including maximum damages under State and Federal Laws, plus an incentive fee for the lead plaintiff with attorney fees paid separately. The case involved a worker who was paid a day rate regardless of the amount of hours worked per day and per week.
Class Action Jury Trial
Workers alleged that they were misclassified according to their job duties. The Defendant claimed an administrative exemption under the FLSA and state law. Misclassification cases under the FLSA are the cases most often tried due to non-monetary considerations. Jury Trial lasted three weeks. Settlement offered in lieu of appeal.
Acquittal at Trial
Despite videotaped evidence that the prosecutor alleged incriminated the defendant, Mr. Brown was able to obtain an acquittal at trial for his client. Please note, that while we, the Brown, LLC will provide consultations in defense matters, the firm spends most of its time litigating complex litigation such as class actions, mass torts and catastrophic injuries.
Judgment with Maximum Damages for Wage & Hour Dispute
Wage & Hour dispute on behalf of hourly employees who were not paid time and a half for hours in excess of 40. Employees were granted double damages for all their time with attorney fees and costs paid separately.
Million Dollar Settlement for Wage & Hour Class Action Case
Workers were compelled to come into work 15 minutes early to set up, but were not paid for their set up time. Gap issues aside, workers received double damages for the time worked for 3 years’ worth of pay with attorney fees paid separately.
This is a non-exhaustive list of prior results and successes of Jason T. Brown and the Brown, LLC. Past results do not guarantee a similar outcome.
For more information about each award see Awards & Accolades – All cases involve Jason T. Brown and/ or Brown, LLC
No aspect of this advertisement has been approved by the Supreme Court of New Jersey.
Results may vary depending on your particular facts and legal circumstances.