Introduction
In one of the most impactful legal victories of the year, Lex Firm Global secured a $5.6 million settlement for more than 30 investors who suffered substantial financial losses due to broker misconduct. This class action case revealed the dangers of unsupervised advisors, aggressive trading practices, and a brokerage firm that looked the other way — until it was too late.
This post walks you through how we investigated the misconduct, organized a multi-client class action, and ultimately delivered justice to those who had almost lost hope.
What Went Wrong: Unsuitable Advice & Excessive Trading
The affected investors reported seeing unusual trades on their accounts. Many were retired, with conservative financial goals — yet their portfolios were filled with risky margin positions, complex options, and volatile equities.
We discovered that several brokers at the firm had been “churning” accounts, making excessive trades solely to earn commissions. Others had invested clients into unsuitable financial products without proper risk disclosures.
Despite internal complaints, the firm failed to take disciplinary action or even inform the clients — a clear breach of fiduciary duty and FINRA regulations.
How We Built the Case
When multiple complaints reached Lex Firm Global, we took a strategic approach:
- Interviewed over 30 victims and analyzed their brokerage statements
- Subpoenaed internal communications from the brokerage firm
- Coordinated with FINRA to compile misconduct reports
- Gathered evidence of ignored red flags by supervisors
Rather than filing 30 separate lawsuits, we formed a class action, which gave victims collective power and expedited the path to compensation.
The Outcome
The settlement included:
- $5.6 million awarded to victims
- All legal fees covered by the defendants
- Broker licenses revoked or suspended for three individuals
- Mandatory compliance reform ordered for the brokerage firm
In addition, the firm was placed under regulatory review, and several victims have joined ongoing civil cases for additional claims.
Conclusion
Broker misconduct can happen quietly, over time, and without your knowledge — until the damage is irreversible. At Lex Firm Global, we help uncover unethical practices and demand accountability from brokers and firms alike.
If you believe your advisor made trades without your consent or exposed you to unnecessary risk, contact us. You are not alone, and your losses can be fought for.