Order Failure: When a Broker’s Delay
Means an Investor’s Loss
Investors make decisions based on the best information available to them at the time. And when they tell their brokers to carry out those decisions, the broker is contractually obliged to do so. If the broker neglects his or her duty, the investor can lose big — and the broker can be charged with order failure losses.
Order failure occurs where an investor tells the broker to buy or sell a stock, and the broker either fails to do so or doesn’t do it in a timely manner.
If the broker’s negligence results in a loss, it could constitute broker misconduct and a breach of fiduciary duty.
If you have lost money because of order failure, or if you are a broker facing false accusations of order failure, be sure to hire an experienced lawyer to fight for your interests.
Attorney David E. Robbins has practiced securities law for over 35 years. He is the author of the Securities Arbitration Procedure Manual, the authoritative work used every day by law firms, law schools and brokerages throughout the country. He is known and respected by attorneys throughout the country.
He has been a Special Deputy Attorney General of New York in the Securities Fraud Bureau. He then was the director of the Compliance Department and Legal Regulatory Division of the American Stock Exchange. He has arbitrated cases for the NYSE and the NASD (now FINRA). One of the most respected and reputable attorneys in this field of law nationwide, he is frequently asked by national news media for commentary on emerging legal issues.