What is typically a plaintiff’s greatest challenge in a securities lawsuit against a broker?
Minneapolis attorney Scott Benson of Briol & Associates explains how proving a plaintiff suffered a loss based on the broker’s negligence is the first hurdle.
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I think the biggest challenge initially is did the plaintiff or potential plaintiff suffer the kind of loss for which they can recover. There are some losses where the market just was bad for everybody, and in those circumstances there really isn’t any recovery for that plaintiff. The broker in that case would not have been negligent. So determining whether or not there was a loss for which there can be compensation I think is the first hurdle that any potential plaintiff has to cover. Beyond that, whether or not they can actually recover, whether there are assets to recover from, is another hurdle that a potential plaintiff will face. So if the brokerage firm that the broker works for has assets from which they can recover is a very important thing that has to be determined right up front in those cases.