Edward J. Hershewe Civil Litigation Law Blog on Lawyers.com

If you were the victim of stockbroker fraud or other securities violations, your initial consultation with your investment attorney is very important. It will be the basis for your hiring decision and an introduction to the case issues for the securities lawyers.

For a productive meeting, you must provide your securities attorney with information that will allow him or her to estimate the strength of your case. Investment lawyers cannot tell you what course of action they recommend otherwise. The more information, documentation, and evidence you can supply, the more accurate the advice you receive from a securities lawyer.

Investment attorneys also know that lawsuits require evidence of securities violations, or reasonable assumption that the evidence exists, to avoid a dismissal. Successful lawsuits claiming a violation of Section 10(b) of the Securities Exchange Act of 1934 or Rule 10b-5 require you to allege and prove the following:

• A material misrepresentation or omission
• Scienter—The wrongful state of mind or the information necessary to know an act is wrong or illegal
• Connection with the purchase or sale of a security
• Reliance—May not be necessary in cases of fraud by omission
• Economic loss

Cases prior to the Private Securities Litigation Reform Act in 1995 were not subject to the strict evidence requirements enacted by the legislation. Before, plaintiffs could bring a complaint with little support and receive the evidence necessary for a ruling in their favor during the trial. The discovery phase requires that the parties exchange information material to the case.

Since the change in law, courts do not proceed to the discovery phase until after entertaining a defending securities lawyer’s motion to dismiss. The judge hears plaintiff evidence and decides if it is reasonable to believe the securities law violation occurred. If he or she dismisses your case, you will not receive compensation for your losses.

Investment lawyers need all the information available to you in order to decide if your case is strong enough to pursue. When you meet with a securities lawyer for the first time, bring all the correspondence, documents, prospectuses, and other evidence you believe supports your complaint. He or she can identify what information is valuable to presenting your case.

Many investment lawyers offer initial consultations at no charge. Contact a securities lawyer at The Hershewe Law Firm, P.C. and arrange a meeting when you believe you have the evidence to support your claim.