Customers Who Suffered Losses in Sheaff Brock’s Put Income Strategy Through TD Ameritrade May Be Able Recover Investment Losses Through FINRA Arbitration Claims against TD Ameritrade
According to Law360.com, investors filed a class action against TD Ameritrade for losses that they suffered as a result of TD Ameritrade’s recommendation to invest with Indiana investment advisory firm Sheaff Brock Investment Advisors LLC (“Sheaff Brock”). The investors in the class action accused TD Ameritrade of misrepresenting Sheaff Brock’s investment strategy as being low risk, when in reality it was incredibly risky. Many investors lost significant sums of money after investing with Sheaff Brock through TD Ameritrade’s AdvisorDirect program.
On May 14, 2019, Law360 reported that the class action against TD Ameritrade was dismissed. The judge in the class action, however, did not provide opinions regarding the actual merits of the case. As such, investors who lost money at Sheaff Brock following TD Ameritrade’s recommendation to invest with Sheaff Brock may still pursue FINRA arbitration claims against TD Ameritrade for their investment losses.
At least some of TD Ameritrade’s customers invested in the “put options income” trading strategy, whereby Sheaff Brock would allegedly execute their trading strategy using TD Ameritrade’s platform, the class action complaint alleged.
It was alleged that among other duties, TD Ameritrade had an obligation to make only suitable investment recommendations and to monitor the trades with Sheaff Brock. TD Ameritrade, through its AdvisorDirect program, allegedly introduced high net-worth customers to third-party investment advisors such as Sheaff Brock, according to publicly available information.
Investors may be able to recover losses suffered as a result of TD Ameritrade’s recommendation for its customers to invest in Sheaff Brock’s put income strategy.
Contact Levin Law for a free case evaluation to discuss whether you may be able to recover your Sheaff Brock losses by filing a FINRA arbitration claim against TD Ameritrade. Contact Levin Law today at (305) 402-9050 or via email at firstname.lastname@example.org.
Brian Levin is the managing partner of Levin Law, P.A., and has both a domestic and international practice, primarily representing individual investors, institutional investors, family offices, and others in claims for investment-related wrongdoing against brokerage firms, private banks, investment advisors, commodities firms, hedge funds, and others. He also represents financial-industry professionals, including financial advisors, private bankers, hedge-fund employees, professional traders, and others in employment-related and trading claims against financial institutions.
In addition, Mr. Levin represents parties in consumer and securities-related class actions and whistleblower actions, as well as parties in business disputes, including corporate divorces, employment matters, and general business litigation. He has recovered millions of dollars on behalf of aggrieved investors.