When investors suffer losses due to fraud or mismanagement in alternative investments such as private equity funds, hedge funds, or real estate partnerships, they may have legal recourse to recover some of their money. However, finding the best investment loss lawyer can be challenging. This article provides guidance on how to find the right attorney for your case.
Understand your options for legal recourse
The type of attorney you need depends on the specifics of your case. If you lost money because your broker or advisor engaged in wrongdoing like overconcentration, churning, or making unsuitable recommendations, you may have a claim. An investment loss lawyer can help you file a FINRA arbitration claim or lawsuit to recover damages. If you invested in a partnership, LLC, or private company that went bankrupt or failed to perform as promised, you may be able to sue third parties like accountants, appraisers, attorneys involved in the offering, or corporate directors and officers. An experienced securities attorney can assess your case and advise you on the best legal strategies.
Look for an attorney experienced with your type of investment
Not all attorneys handle cases involving alternative investments. You’ll want to find an investment loss lawyer who regularly works with the specific types of investments you were involved in, like hedge funds, private equity, REITs, structured products, private placements, non-traded REITs, or energy partnerships. Ask about the firms experience – the number of cases handled, success rate, and settlement amounts recovered for clients. Make sure the law firm has significant financial resources to take on big opponents and isn’t afraid of going to trial if necessary.
Understand how attorney fees and costs work
Most investment loss attorneys work on a contingency fee basis, meaning you don’t pay them anything upfront and they only get paid if you recover money. The typical fee is 30-40% of the client’s net recovery amount. Understand whether costs like expert witnesses, travel, depositions etc are deducted before or after the contingency fee is calculated, as this makes a big difference in how much you actually get. Also ask if the law firm advances costs or if you need to pay them out of pocket.
Research credentials, experience and case results
Check credentials like law school attended, bar admissions, published articles, speaking engagements at industry conferences, professional memberships and awards. Look for an attorney with 10+ years specifically handling investment cases, not just general commercial litigation. Review case results achieved for clients – not just settlements and awards obtained, but the net amount recovered after legal fees. An investment loss attorney with a strong track record of results can often get better settlements from brokerage firms and other deep-pocketed defendants keen to avoid risky and costly trials.
Understand the law firm’s resources
Recovering investment losses often involves battling wealthy corporations that don’t hesitate to spend heavily on their own legal defense. You need an investment loss law firm that has the financial resources, staff and infrastructure to go the distance against well-funded opponents. Find out how many attorneys and legal staff work at the firm, whether they have private investigators and other professionals on retainer. Be wary of solo practitioners taking on big Wall Street firms they can easily outspend.
Finding the best investment loss attorney requires research into their experience, credentials, resources and track record obtaining substantial recoveries for clients. Understanding typical fee structures and your legal options are also important.