Litigating Securities Fraud Disputes
Misrepresenting facts in the sale of securities violates state and federal law. The securities fraud lawyers at Dunham LLP, in Austin have extensive experience representing parties damaged in securities transactions. Whether injured during the sale of an equity interest in a private company, an LLC or from the sale of publicly traded stock, consult our securities litigation attorneys to understand your rights.
Securities Litigation Arising From Business Dealings
The transactions and scenarios that may give rise to claims of securities fraud include:
- Corporations who misrepresent, hide or distort information in their communications with shareholders
- Executives and control persons in companies and other business who misrepresent or conceal fact is in communicating with investors
- Broker-dealers and financial advisors who provide false information to investors
- Partners who engage in self-dealing and do not deal with their partners in good faith
State securities statutes provide broad relief to those damaged in securities transactions. In Texas, a security refers to an investment such as stock, bond, note, debenture, limited partnership interest, oil and gas interest, and investment contract. Misrepresentations made in the context of transactions involving securities may be actionable under securities fraud.
Frequently Asked Questions About Securities Fraud
Below are answers to common questions our clients ask about securities fraud cases and how our firm can help protect your investment interests:
What are common signs that I may be experiencing securities fraud?
Several warning signs may indicate you are a victim of securities fraud. These include receiving investment materials that contain inconsistent financial information and discovering that promised returns were significantly exaggerated or that key risks were not disclosed. You should be concerned if you notice unexplained changes in your investment’s value that do not align with market conditions or company performance.
Other red flags include pressure to invest quickly without adequate time to review documents, reluctance by brokers or company representatives to provide written documentation of investment terms, and discovery that your broker made unauthorized trades or investments. If company executives or financial advisers have provided conflicting information about the investment’s prospects or have failed to disclose material conflicts of interest, these may constitute securities fraud.
What should I do if I believe I am a victim of securities fraud?
If you suspect securities fraud, act quickly to preserve your rights and gather evidence. Begin by collecting all documentation related to your investment, including purchase agreements, promotional materials, correspondence with brokers or company representatives, and account statements showing losses.
Avoid making additional investments with the same parties and document any ongoing communications that may contain admissions or contradictory statements. Contact an experienced securities litigation attorney promptly, as statutes of limitations may limit your ability to pursue claims if you wait too long.
What remedies are available to victims of securities fraud in Texas?
Texas securities law provides robust remedies for fraud victims. You may be entitled to rescission, which allows you to unwind the transaction and recover your original investment plus interest. Alternatively, you can pursue damages for the difference between what you paid and the actual value of the securities.
Additional remedies include recovery of attorney fees and costs, which can significantly reduce the financial burden of pursuing your claim. In cases involving willful violations, you may also recover punitive damages designed to punish wrongdoers and deter future misconduct. Texas law also provides for joint and several liability, meaning multiple defendants can be held responsible for the full amount of your damages.
How are your legal fees structured for securities litigation cases?
Our firm recognizes that securities fraud victims have already suffered financial losses and should not face additional barriers to seeking justice. Under contingency fee arrangements, you pay no attorney fees unless we successfully recover compensation on your behalf. This means we only get paid when you do, eliminating upfront costs and financial risk.
We also offer hybrid fee structures that combine reduced hourly rates with lower contingency percentages. This approach can benefit clients who prefer some predictability in legal costs while still maintaining performance incentives for our firm.
Contact Us To Find Out More
Our firm uses creative and incentive-based fee arrangements. We offer clients the benefits of contingency fee arrangements or a hybrid fee arrangement (a combination of reduced hourly rates and reduced contingency rates). When you need effective and aggressive representation from a lawyer experienced in handling securities disputes, we are here to help. Contact us online to discuss your case or call 512-764-3986.