Misrepresentations and Omissions

Misrepresentations and Omissions

Financial advisors are obligated to provide their clients with all of the material facts related to a specific investment. If these material facts are not provided, or if they are ignored, you may have a cause of action. Misrepresentations and omissions, can be either intentional (i.e., done on purpose) or negligence (i.e., on accident). Misrepresentations and omissions usually occur when a financial advisor, who is trying to sell a client a security or investment product, makes a false statement about some aspect of the transaction. For example, the financial advisor can downplay the specific risks of the investment, they could misstate the financials of underlying company, or they lie about their compensation/commission.