New York, NY: A client who filed an arbitration claim against Fisher Investments could be awarded more than $300,000 in her Fisher Investments complaint. The award against Fisher Investments was given after the client complained that her account was over-concentrated in stocks.
According to the complaint, the client's money was reportedly highly invested in stocks. The complaint alleged that almost one hundred percent of her portfolio was invested in stock, which was unsuitable for her, given her age and risk tolerance. Furthermore, the client alleged that she had not wanted to invest her money with Fisher investments, but felt pressured to do so.
Because the client likely signed an arbitration agreement when she invested with Fisher Investments, she was unable to file a lawsuit and instead filed her complaint with JAMS arbitration. The arbitrator in the case apparently agreed with the investor, finding that Fisher did not tailor its recommendations to the client specifically and instead suggested a portfolio that was not suited to her.
According to Bloomberg (07/07/11), a spokesperson for Fisher Investments argued against the arbitrator's finding, saying, "The decision was completely wrong on the law and the facts." He went on to note that Fisher has lost one arbitration in seven years, highlighting the integrity of the financial firm.
The complaint alleged that the client, Sharyn Silverstein, phoned Fisher Investments with her concerns about the lack of bonds in her portfolio but was told she would pay a fee if she quit, so she allowed the company to continue managing her account. Silverstein reportedly lost approximately $376,000 between September 2007 and October 2008.
Although her losses were above $300,000, the actual amount of the award from arbitration has not been made public. In addition to recovering her losses, Silverstein may also be awarded attorney's fees.
Professional registered investment advisors are under a duty to act in the best interests of their clients, taking into account their risk tolerance, age and financial goals. Failure to do so could potentially be a breach of fiduciary duty, which could result in arbitration claims being filed against the individual advisor or the financial firm that employs the advisor.
If you or a loved one have suffered losses in this case, please click the link below and your complaint will be sent to a financial lawyer who may evaluate your Fisher Investments claim at no cost or obligation.
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According to the complaint, the client's money was reportedly highly invested in stocks. The complaint alleged that almost one hundred percent of her portfolio was invested in stock, which was unsuitable for her, given her age and risk tolerance. Furthermore, the client alleged that she had not wanted to invest her money with Fisher investments, but felt pressured to do so.
