Legal Question in Business Law in California

Erroneous financial information, damages

I have a 401k.I wanted to purchase stock using the ''brokerage account''option.I called,recv'd via fax, signed&returned forms.They opened my trading acct.I tried to purchase a stock that trades on the bulletin board exchange.I told 401k administrator up front this was my whole intention.They said I could do it. When I tried to execute trade online,the screen showed message saying I can't do it.Called 401k admin.,told them about message. Rep said it was because my funds hadn't yet transferred to the special 401k trading account,it would be available to do so tomorrow. I asked if they were sure trading this stock wouldn't be a problem,reiterating it trades on the bulletin board exchange.He said you can trade any publicly traded stock,after all it's your money.Long story short...they won't allow the trade,saying bulletin board stocks are risky,and the reps who told me I could were misinformed.I tried to execute a trade that would have netted 30K profit (5,000 shares at 1.60, stock is currently at 7.60).Do I have any recourse?I'm sure there is/are records of these phone conversations,as well as my online trade attempts. Thanks in advance.


Asked on 6/03/03, 9:02 pm

1 Answer from Attorneys
Michael Olden Law Offices of Michael A. Olden

Re: Erroneous financial information, damages

absolutly --- the problem is you are going thru an internet trader and it will greatly depend on the contract and its wording you signed with the co. --- if you wish e-m me or call me and i will be happy to better advise you by reviewing your paperwork ---

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Answered on 6/03/03, 10:50 pm


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