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LPL Financial is facing a significant lawsuit that involves both class action and regulatory problems. The lawsuit was filed by a group of former LPL Financial advisors who claim the company mismanaged their retirement accounts.
The lawsuit alleges that LPL Financial failed to properly manage the advisors' retirement accounts, leading to significant financial losses. This is a serious accusation that could have a major impact on the company's reputation and finances.
LPL Financial has a significant presence in the financial industry, with over 16,000 advisors and $750 billion in assets under management. This lawsuit could potentially affect thousands of people who have invested with the company.
Explore further: Lpl Advisors Fiduciaries
What You Need to Know
Here's what you need to know about the LPL Financial lawsuit. LPL Financial is facing a lawsuit over its handling of customer accounts.
The lawsuit claims that LPL Financial failed to supervise its representatives, leading to the misuse of customer funds. The company is accused of prioritizing its own interests over the needs of its clients.
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LPL Financial has a large network of financial advisors, with over 14,000 representatives across the country. This lawsuit is one of several cases filed against the company in recent years.
The lawsuit alleges that LPL Financial's policies and procedures allowed its representatives to engage in misconduct, including the unauthorized use of customer funds. The company has a history of settlements and fines related to these issues.
Lawsuit Details
The lawsuit against LPL Financial LLC was filed by Soreide Law Group on behalf of a client who resides in Florida. The client had an investment relationship with LPL Financial and their financial advisor, Samuel Izaguirre.
The client allegedly advised Izaguirre that he did not want to take unnecessary risks with his retirement savings, but Izaguirre recommended investing in the Northstar Healthcare REIT anyway. This investment has since traded down from $10 per share to $2.50.
The lawsuit alleges that LPL Financial and Izaguirre failed to adequately advise the client of the risks of this recommendation and the high commissions they received for selling the REIT. The client has suffered significant damages, with principal losses of at least $93,000.
Samuel Izaguirre has been in the securities industry for 14 years and has been listed with LPL Financial LLC since 2011. He has two Disclosures on his FINRA report, both of which are Customer Disputes.
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Consult an Attorney for Investment Loss Recovery
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If you've suffered investment losses due to LPL Financial advisor misconduct, you have the right to seek reimbursement from the responsible parties.
The Law Offices of Robert Wayne Pearce, P.A. can help you discuss your legal options with an experienced attorney. Get a free consultation to explore your case.
Having the support of a reputable attorney who is experienced in recovering investment losses for investors is key to your success.
Attorney Robert Wayne Pearce has helped countless investors over the last 40 years recover the losses from their investment accounts that were caused by broker negligence or misconduct.
LPL Financial is responsible for its financial advisors' acts and omissions, and it also has an independent duty to supervise its stockbrokers and investment advisors.
Consult with an attorney who recovers investment losses caused by LPL Financial today!
The securities attorneys at The Law Offices of Robert Wayne Pearce, P.A. have extensive experience with LPL Financial cases, and Attorney Pearce is committed to seeing that those responsible for the losses you have suffered are held fully accountable.
If you're unsure about your next steps, consider the following practice areas that may be relevant to your case:
- Securities Arbitration
- Securities Litigation
- Class Actions
- Commodities Arbitration
- SEC Whistleblower
- Breach of Fiduciary Duty
Class Action and Lawsuit
You don't need to do anything to join a class action lawsuit when it's initially filed, you'll typically be automatically included.
LPL Financial is currently facing a lawsuit filed by Soreide Law Group on behalf of a client who invested in a Northstar Healthcare REIT through LPL Financial and their financial advisor, Samuel Izaguirre.
The lawsuit alleges that LPL Financial and Izaguirre failed to adequately advise the client of the risks associated with the investment, and that they received high commissions for selling the REIT.
Non-traded REITs like the one in this case are illiquid investments with substantial risks, and FINRA reminds members offering these types of investments to conduct adequate due diligence and provide balanced disclosure of both the risks and rewards.
The client in this case suffered significant damages, with principal losses of at least $93,000, and the lawsuit alleges that LPL Financial's actions constitute negligence, breach of fiduciary duty, and other violations.
If this caught your attention, see: Fisher Investments Lawsuits
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Samuel Izaguirre has been in the securities industry for 14 years and has two customer disputes on his FINRA report, including one that is currently pending with a requested damage amount of $100,000.
If you've experienced losses due to the recommendations of LPL Financial and/or Samuel Izaguirre, you may be able to recover your investment losses through a FINRA arbitration.
Regulatory Problems and Issues
LPL Financial has a long history of regulatory problems. There have been approximately 180 formal proceedings initiated by regulatory authorities for violations of investment-related rules or regulations.
The firm has been repeatedly censured, warned, and fined over $100 million for its own misconduct and failure to supervise its financial advisors. This is a staggering amount that highlights the severity of the issues.
Independent broker-dealers like LPL Financial are notorious for their lax supervisory practices and procedures. The business model of these firms prioritizes growth over investor protection.
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The typical supervisory organization of independent broker-dealer operations relies on remote Offices of Supervisory Jurisdiction (OSJs) to monitor registered representatives. However, these OSJ managers often run their own businesses and are not devoted full-time supervisors.
As a result, investors who have transferred their accounts to these firms may be vulnerable to sales of securities that have not been reviewed or authorized by anyone other than the sales representative earning a commission. This lack of oversight can lead to investor losses.
Advisor Misconduct and Losses
If you've suffered investment losses due to advisor misconduct, you have the right to seek reimbursement from the responsible parties. LPL Financial, like any employer, is responsible for its financial advisors' acts and omissions, as well as its independent duty to supervise its stockbrokers and investment advisors.
Many investors make the mistake of contacting LPL Financial without representation from an attorney, only to have their complaints denied. Having a reputable attorney who is experienced in recovering investment losses for investors is key to your success.
The securities attorneys at The Law Offices of Robert Wayne Pearce, P.A. have helped countless investors over the last 40 years recover the losses from their investment accounts caused by broker negligence or misconduct. Attorney Pearce is committed to seeing that those responsible for the losses you have suffered are held fully accountable.
If you're seeking reimbursement for investment losses, it's essential to have the support of an experienced attorney who has handled similar cases, like those involving LPL Financial.
Some common areas of practice in these types of cases include:
- Securities Arbitration
- Securities Litigation
- Class Actions
- Commodities Arbitration
- SEC Whistleblower
- Breach of Fiduciary Duty
Sources
- https://www.thinkadvisor.com/2024/09/26/ex-advisor-sues-lpl-citizens-bank-trust-over-botched-transition/
- https://www.secatty.com/firm-investigations/lpl-financial-complaints/
- https://www.classaction.org/news/lpl-financial-lawsuit-accuses-investment-advisor-of-acting-in-its-own-interest-to-maximize-profits-via-cash-sweeps
- https://www.stockattorneys.com/articles/lpl-financial-fraught-with-allegations-of-supervisory-failures/
- https://www.securitieslawyer.com/lpl-lawsuit-filed/
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