Finding a Securities Lawyer

It is generally best to hire a lawyer that specializes in securities law and investor protection. An experienced attorney has prepared arbitration cases before, and he or she is familiar with the process. Some law firms employ former brokerage employees or regulatory agency employees, so they have intimate industry knowledge. Some firms represent both sides while others represent only investors.

In contrast to regulatory agencies, securities attorneys work directly for investors. The burden of proof is different for an attorney than it is for a regulator. The SEC is focused on regulating the entire securities industry. Attorneys focus on recovering compensation for investors who have been wronged.

If you engage an attorney, be sure to choose one that

• Handles only securities cases
• Has been at it for a long time
• Knows the stockbroker industry inside and out

Investors should be aware that an estimated three-quarters of the attorneys who claim to do securities cases did not do them four years ago. Most are new to the industry, and many are inexperienced in the field. Experienced attorneys can be useful because unlike most investors, they have been through the arbitration process many times.

The lawyer will generally meet with you for mutual information exchange and may ask you to collect information about your accounts. After assembling your information, lawyers can will help you decide which course of action to take.

Most investor/brokerage cases are not tried in court. Experienced lawyers know when to negotiate with brokerages, when to go through mediation or arbitration, and when to litigate.

Lawyers can suggest which forum to file in (for example, FINRA). They prepare the case (which is much like preparing a court case, although there are differences.) They go to the arbitration proceeding with you and present your case.

Geographic Considerations

Most investor cases are not heard in their hometowns, so you get no benefit from hiring a local attorney. Your best bet is to hire the best securities attorney you can find, regardless of location.