COVID Stock Market Class Action Investigation Picks Up Steam
The COVID-19 toll on our financial systems and our economy has been huge and unprecedented. Investors, particularly those who are retired or nearing retirement age, became alarmed over the coronavirus impact on the stock market, and have sought guidance from financial advisors to help them protect their assets from a stock market crash. With this, stemmed a new Coivd Stock Market Class Action investigation. Should you and your portfolio be included?
Well, investors have claimed that their financial advisors have given them unsuitable advice which caused them to experience stock market losses. The economic impact of the pandemic led to widespread market volatility and fear as investors try to outsmart the stock market.
Are you an affected investor? If you are, contact us today for help!Contact Us
On Stock Markets and Financial Advisors
VOX, a research-based analytics organization, said that the U.S. stock market suffered a “historic plunge (which is about one-third of its value) that took place between 20 February and 23 March 2020.”
The U.S. News & World Report categorizes financial advisors as fiduciaries or non-fiduciaries. Only fiduciary financial advisors are required by law to act in the best interest of their clients. Financial advisors who deviate from their fiduciary duty run the risk of perpetrating fraud on their clients, which may subject them to litigation.
The Securities and Exchange Commission listed down several important standards for fiduciaries known as the Regulation Best Interest, which includes:
- Disclosure Obligation: Providing full and fair disclosure of all facts that are material to a reasonable investor
- Care Obligation: Providing “reasonable diligence, care, and skill in making the recommendation” to investors
- Conflict of Interest Obligation: Avoiding or anticipating how to confront and work through potential conflicts of interest
- Compliance Obligation: Adhering to and sustaining compliance with Regulation Best Interest.
The fiduciary duty requires investment advisors to always act in good faith.
Editor’s note on the COVID Stock Market Class Action Lawsuit Investigation:
This article is crafted to inform you about the COVID Stock Market Class Action Investigation. If you or a family member was affected by the Coronavirus Stock Market Crash, contact us today for help and evaluation.
If you are considered eligible to be among the class of consumers described in the article above, you may eventually be able to participate in receiving any compensation the court may award.Contact Us
We’d be happy to help you take a step in the right direction, fight this issue, and better enable you to join in on any potential consumer class action. If interested, please send an email to Outreach@ConsiderTheConsumer.com, find us on Twitter or Facebook, or even connect with us directly on our website! We look forward to hearing from you all.
Similarly, please check out our current list of Class Actions and Class Action Investigations, here.
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