Misleading Information Dedicated to Delivering Results

New York Based Misleading Information Attorneys

Helping Clients Pursue Legal Action Nationwide

When it comes to investing, most investors rely heavily on the information fed to them by their brokers, hoping they will not be steered in the wrong direction. In a perfect world, that should always be the case, however, there have been cases of clients receiving misleading information that led to financial losses. Even if the broker was unaware that the information they imparted is misleading, there can still be a case, depending on the circumstances.

In the business world, agreements are most often made in the form of written contracts. This contract is held as proof that both parties are aware of and consent to the terms of the agreement. However, when a false claim is made – be it written, verbal, or even through a simple gesture – the contract can be deemed invalid due to the fact that certain information contained within it is misleading.

Fraudulent Misrepresentation

Fraudulent misrepresentation occurs when a party knowingly made a false statement to induce the other party into signing a contract. Let’s take the example of an issuer claiming that their investment product is the only one of its kind and can promise high returns. It is revealed later on that the issuer knew this to be untrue and there are, in fact, many similar products out there. Because the issuer knew this claim to be false when making it, it is considered fraudulent misrepresentation and the contract is now invalid. Furthermore, the victim is entitled to take legal action and receive compensation if a financial or material loss has been suffered.

Negligent Misrepresentation

Negligent misrepresentation is closely related to the failure to perform due diligence before recommending a product. Simply put, it means that the party who provided false information was unsure of the veracity of their statement and did not attempt to verify it. Taking the same example about the issuer and their investment product, this means the issuer is unsure whether their product really is one of a kind and did not bother to do the relevant investigation to prove or disprove it. Compensation for damages can be legally sought in cases of negligent misrepresentation.

Innocent Misrepresentation

You might be asking, what if the other party did not know the information they were providing is false? If that is the situation, you might have a case of innocent misrepresentation. This is remedied simply by declaring the contract null and void, and both parties are no longer under obligation to any of its terms.

Discuss Your Misleading Information Case with Our Legal Team Today

If you believe that you have been a victim of misleading information or are unsure which category your case falls under, then please do not hesitate to reach out to Weltz Law so our experienced team of attorneys can assist with your FINRA arbitration and litigation matters.

Call us today at (877) 905-7671 to request a free case consultation with our New York lawyers.


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    Our attorneys have over 30 years of collective experience representing clients in all aspects of securities and commercial litigation.

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