New York, NY securities attorney Jenice L. Malecki talks about the types of damages that are typically sought in cases related to annuities, private placements, or illiquid securities. She points out that the damages in these cases can be multifaceted. In the context of an annuity that was improperly sold, an investor could seek reimbursement for penalties incurred from early withdrawals. Additionally, “well-managed” damages might be claimed, such as lost income or interest that the investor should have earned during the period they were deprived of proper advice.

Annuities are complex contracts, and investors often do not know how or when to annuitize optimally. If a broker or advisor fails to provide guidance, there may be claims for the loss of future benefits.

With private placements or illiquid securities, damages often take the form of rescission—essentially returning the investment to the broker-dealer or investment advisor and recovering the full amount invested, plus interest and any well-managed damages for the period of improper investment. While secondary markets may offer an exit, selling there can result in significant losses, often 30–50% of the investment’s value.

Ultimately, under securities law, the overarching goal is to make the investor whole and restore the losses caused by unsuitable or misrepresented investments.