When individuals consider making an investment, they expect the information they are given about the investment to be accurate. However, in reality this is not always the case. Investment and securities fraud may seem simple, but these allegations can be extremely complicated and often involves high financial stakes.

At Burford Perry LLP, our securities fraud attorneys have extensive experience on both sides of the docket – defending those accused of securities fraud, and representing the victims of securities fraud. This gives us unique insight into how the other side thinks and makes our attorneys uniquely qualified to help you resolve your securities fraud issues.

Securities Law

Securities fraud claims can be initiated by state or federal regulatory agencies or by private parties. Securities fraud cases brought under the 1934 Securities and Exchange Act and Rule 10b-5 require the plaintiff to meet a number of requirements. These requirements, or elements of a securities fraud claim, are critical to proving securities fraud occurred and the plaintiff winning their case. Cases of investment fraud often hinge on technical details; and, if the requirements of a securities fraud claim are not met, it is likely the case will be dismissed.

Texas Securities Law

Texas securities laws are particularly nuanced, and individuals and businesses are frequently unaware that a transaction is subject to the Texas Securities Act. This is because Texas defines the term “security” broadly to include, for example, an interest in an oil, gas, or mining lease, fee, or title, as well as many joint venture interests, regardless of whether the security is evidenced by a written agreement. [1] Even more, unlike federal securities laws, the Texas Securities Act does not require proof of scienter (bad intent) or reliance — creating a lower standard of proof compared to federal securities laws. [2]

Securities Fraud and Investment Fraud Cases

Securities litigation can arise out of a variety of circumstances, and getting to the issues at the heart of these legal disputes can often be challenging. At Burford Perry LLP, we regularly represent individuals and companies involved in variety of securities fraud lawsuits.

Material Misrepresentation or Omission

Allegations of securities fraud are often based on the defendant misrepresenting, or failing to provide, financial information to the plaintiff, who was seeking to buy or sell a security. Burford Perry’s practice has included high profile successes in such matters, such as in a lawsuit against Panton, Inc.

 Burford Perry represented six investors that invested over $5 million in a “big data” technology startup, Panton, Inc. Panton misstated financials and made misrepresentations regarding the state of its technology which the investors relied on to make their purchase decisions. Burford Perry filed securities fraud claims on behalf of our clients, recouping almost all losses through a confidential pretrial settlement.

Investment Bank and Stockbroker Securities Fraud

There are many laws and regulations that govern the purchase and sale of securities that stockbrokers, also called “investment advisors” or “financial advisors,” must not violate. If an investment advisor gives negligent investment advice that causes financial losses, investors may be able to seek compensation and file a breach of fiduciary duty claim.

Our attorneys have successfully represented both investors and brokers. In the Houston Police Officer’s Pension System v. State Street Bank case, Burford Perry represented the Houston Police Officer’s Pension System against the investment advisory arm of one of the largest banks in the country, State Street Global Advisors. The Houston Police Officer’s Pension System lost tens of millions from a complex sub-prime bond investment that was managed by State Street Global Advisors. Burford Perry was able to settle the case favorably for our clients prior to trial.

Other Types of Investment Fraud

Despite advances in technology, increased consumer education, and abundant access to information, investment-related scams remain prevalent. Securities litigation inevitably arises out of a variety of fraudulent actions, and getting to the issues at the heart of these disputes can often be challenging. At Burford Perry LLP, we regularly represent individuals and companies involved in securities litigation including:

  • Pyramid Schemes
  • Ponzi Schemes
  • Internet Investment Fraud
  • Offshore Scams
  • Promissory Notes
  • Market Manipulation, also known as “Pump and Dump” Fraud
  • Advanced Fee Fraud
  • Insider Trading
  • Stock Broker Churning
  • Embezzlement
  • Accounting Fraud, such as falsifying details in corporate filings

Burford Perry, Securities Fraud Attorneys for Security Litigation

Sometimes, securities fraud litigation can be resolved in out of court settlement negotiations. Other times, only court proceedings or arbitration can bring a resolution to the matter. Regardless of the avenue of resolution, the securities litigation lawyers at Burford Perry LLP are aggressive advocates for our clients. We’ve won substantial verdicts for our clients in the courtroom, succeeded often in arbitration, and negotiated significant settlements.

For individuals facing securities lawsuits, it is imperative to work with only experienced securities fraud lawyers. The attorneys at Burford Perry LLP have over 65 years of combined experience handling the most complex business issues.

Contact us today to schedule an appointment with one of our securities litigation attorneys.

[1] Tex. Rev. Civ. Stat. Ann. art. 581-4.

[2] In re Enron Corp. Sec., Derivative & ERISA Litig., 761 F. Supp. 2d 504, 544 (S.D. Tex. 2011).