SETTLEMENT
$5,000,000 recovery for high net-worth investor from major brokerage firm.
Erez Law recovered $5 million in 2017 against a major brokerage firm for an ultra high-net worth investor. The claims were based on unsuitable recommendations to invest in proprietary closed-end funds and over concentration in one asset class. In addition, Erez Law filed allegation involving the improper use of bank loans to invest in securities which was a practice not permitted by the brokerage firm. Erez Law filed claims for negligence, breach of fiduciary duty, fraud, negligent supervision, breach of contract and violation of the local anti-fraud statutes. The settlement is notable for the size of the settlement and the high percentage of recovery based on the amount sought.