Financial damages are the main reason for investor disputes in securities litigation matters, otherwise there would be no reason for a dispute. Financial damage calculations are a highly complex application of economic and financial analysis. In the simplest terms, financial damages are any loss in value suffered by an investor that is the result of an act or failure to act, committed by a responsible party. Securities litigation requires the integration of client-specific case facts with securities industry sales practice rules and regulations with a rigorous financial analysis to determine financial damages.
Klayman & Toskes, P.A. uses professional financial experts to analyze and help determine a viable financial damage calculation as a part of the development of its legal strategy and arguments for clients. Professional financial experts used by our law firm include credentialed individuals such as current and former college professors of Economics and Finance, Chartered Financial Analysts (CFA), Certified Financial Planners (CFP) and Financial Industry Regulatory Authority (FINRA) licensed individuals. Our law firm can help better explain how financial damage calculations are affected by different factors which determine the financial damages.
Financial Damage Calculations
Financial damage calculations are a function of a wide range of factors from arithmetic and statistical calculations to behavioral and regulatory laws. Financial damage calculations which may be asserted for an investor’s claims of financial damage may include, but are not limited to, the following Damage Theories:
- Net-Out-Of-Pocket Loss;
- Account Underperformance;
- Excessive Commissions and Fees;
- Failure to Diversify;
- Securities Concentration/Failure to Hedge;
- Rescission of Transaction;
- Benefit of the Bargain;
- Financial Product Failure; and
- Lost Profits.
Klayman & Toskes, P.A. is dedicated to the protection of investor rights. We represent investors who suffered financial damages that are the result of violations in FINRA sales practice rules and regulations by brokerage firms and its financial advisors. Financial damages may be the result of any of the following violations including breach of duty, misrepresentations and omissions of material facts, securities concentration, conflicts of interest, excessive trading and excessive markups and markdowns. We can examine the handling of your investment accounts and help you determine your financial damages.