Legal Question in Investment Law in New York

Can I sue my broker/bondhouse for malpractice over huge loss from their advice?

My now-deceased mother's investment advisor suggested that I put her IRA (my inherited IRA) into approx. 150 Ford and 50 GM bonds.

Both companies' bonds are now junk bonds.

He's suggesting I sell them, take the HUGE loss, and invest in something investment grade, because he implies if these companies go bankrupt I'll lose everything. The bonds go out to 2028 and 2031.

I don't have the exact figures with me here, but the loss likely be around $80k.

Can I sue this broker and his company for malpractice, advising me to so heavily invest in 1 industry - an industry whose staying power is apparently so questionable?

Please advise. Thank you for your time and consideration.


Asked on 2/06/06, 10:27 am

1 Answer from Attorneys
Robert DiPaolo The Fidelis Group, LLC

Re: Can I sue my broker/bondhouse for malpractice over huge loss from their advice?

This is a complex question for which you would need to provide much more information. You should contact a securities litigation lawyer who specializes in such matters. However, on the face of it, unless your investment advisor did more than simply recommend such bonds, without doing more, it�s unlikely that you have an actionable claim. Feel free to consult the Fidelis Law Group at [email protected] (with copy to [email protected])

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Answered on 2/06/06, 7:32 pm


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