Houston Broker-Dealer Defense Attorneys
Accused of Broker Fraud?
Many clients mistake market losses with broker misconduct. At Hendershot Cowart P.C., we defend broker-dealers in litigation and arbitration matters. Our broker-dealer defense attorneys will dig into the legal facts of the matter, investigate all agreements and understandings, and thoroughly address each claim.
We proudly serve brokerage firms, financial advisors, broker-dealer executives, and compliance officers with more than 100 years of combined legal experience and a strong record of results.
To learn more about what our team can do for you, please call us at (713) 909-7323 today.
PLEASE NOTE: Unfortunately, we cannot defend financial advisors in securities investigations or enforcement actions by FINRA or the SEC.
Broker-Dealer Defense Cases We Handle
We defend stockbrokers and brokerage firms from the most common claims of broker misconduct, including:
- Unsuitable investments
- Breach of fiduciary duty
- Unauthorized trading and transfers
- Excessive trading (churning)
- Poor diversification (concentration)
- Portfolio mismanagement
- Failure to supervise
- Conflicts of interest
- And more
Whether you handle an investment account, securities portfolio, discretionary account, trust, or annuity, our lawyers are here to help.
Defenses to Customer Claims Against Stockbrokers
Investments involve risk and uncertainty, and stockbrokers cannot guarantee profitable investing. While clients may be quick to blame their brokers for losses, firms and financial professionals have several legal defenses. Our broker-dealer defense team will examine each claim, the elements necessary to prevail on that claim, and gather evidence to undermine the plaintiff’s allegations.
If you have been accused of unsuitable investments, for example, you can defend the quality of the investments you recommended by presenting evidence that the investment matched your client’s investment objectives.
Other times, a client may approve a transaction, then claim it was unauthorized when the investment proves unprofitable. Most clients maintain some oversight of their accounts and are responsible for raising objections in a timely manner, giving your legal team a sound defense strategy to counter the claim. Monthly statements, trade confirmation notifications, etc. are all evidence that could overturn an unauthorized trading claim.
There is also statute of limitation defense. Claims brought under Rule 10(b)(5) of the Securities Exchange Act of 1934 must be raised within two years of discovering evidence of a violation or five years after the violation itself – whichever is earlier. Breach of contract claims must be brought within four years in Texas, and tort claims (such as breach of fiduciary duty) in Texas are subject to a two-year statute of limitation.
Our team will develop a legal strategy that takes the fundamentals of each claim brought against you into account and aggressively defend your interests.
Your Law Firm for Life
Hendershot Cowart P.C. takes the time to get to know you, your business, and what your goals are, then we create a legal strategy designed to protect you. We want to be your attorneys, your team, and your law firm for life.
Whether you’ve been accused of breach of contract, breach of fiduciary duty, or a violation of the Securities Exchange Act, we have the experience you need to help you get back to what you do best – helping clients achieve their financial goals.
“They've always come through for me.”- Joseph D.
“Your law firm has impressed me to no end, and should anyone I know ever need legal representation, I will be sure to refer them to ...”- Dr. R
“We sincerely appreciate your dedication and drive in straightening out the most difficult situation in our life.”- Raga and DC Gunnia