Answers - Legal

In recent years, U.S. investors have been plagued by an unprecedented amount of corporate fraud. Irresponsible and illegal actions by Wall Street firms and corporate executives had a catastrophic effect on many individual investors and employees.

Claims by investors against stock

According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product

brokers, investment advisors, and financial planners often fall into certain well-recognized categories. Some of the most common investor claims are: Unsuitable Investment Recommendations - This occurs when a broker or other professional investment advisor inte

; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in

tionally makes decisions that are inconsistent with your individual financial needs. A broker has a legal obligation to make recommendations that are consistent with the client's risk tolerance, needs, and investment objectives. Thus, the broker has a duty to learn about each clie

lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

t's personal financial condition and goals, and to recommend investments and trading strategies suitable for that individual. An investment may be unsuitable if:

A client lacks the financial ability to incur the risk associated with a particular investment.
The in

here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe

estment was not in line with the client's financial needs.

The client did not know or understand the risks associated with certain investments.

Misrepresentations and Omissions - These cases often involve a broker's failure to inform you of th

d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro

risks associated with your investments. Stockbroker "misrepresentation" is simply a legal term for stockbroker "lies". At times, these cases arise from "boiler room"operations, in which teams of unscrupulous brokers make large numbers of cold calls and use high-pressure sales tac

ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc

ics. Under the law, even a prediction or opinion offered by an investment broker can be a fraudulent misrepresentation, when it has no reasonable basis. Common lies include claims by brokers that they know the price that a stock will reach, that their own firm controls the stock p

easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi

ice, that they have inside information from the company, that profits are "certain", or that they are selling stock to you from a hot public offering. These statements rarely have a reasonable basis and may represent investment broker fraud.

Similarly, a broker has an obligation

nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically

o tell the whole truth about a potential investment. In other words, the broker cannot promote the positive features of an investment and withhold the negative aspects or risks. Omission of material facts is a form of unlawful misrepresentation. Many types of false or misleading s

and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ

atements can be the basis for a claim, if an individual reasonably relied upon them in making a losing investment.

Excessive Trading or "Churning" - This occurs when a broker engages in excessive trading in your account, to generate larger commissions. When a bro

ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi

er buys and sells securities in your account to generate commissions that seem excessive, there is a strong possibility that your account is being "churned". However, "churning" also includes any trading done to benefit the broker - rather than the investor. Therefore, even one tr

ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a

ade may be churning if it has no legitimate purpose for the investor. To establish that a broker churned your account, you must show excessive trading patterns. This can be done with several kinds of evidence, including:

Calculations to determine the annualized rate of re

dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod

urn, which was necessary to cover the commissions charged in your account.

Number of times that the equity in your account was turned over to purchase securities.

Purchase and sale trading activity that occurred in your account.

Unauthorized in

cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin

estments - This usually arises when a broker makes trades without your permission. A broker must have the express detailed permission of the client for all trades. This authority only exists when a client signed a written contract in advance, which specifically granted pe

tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen

mission to the brokerage firm to make certain trades without prior approval. Absent this type of arrangement, a firm is required to obtain the client's permission for each transaction. In some cases, the broker simply failed to ask a client for permission to make trades in a nondi

t?

As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel

cretionary account. In other circumstances, the broker bought stock on margin without authority, or ignored a client's specific instructions about a discretionary account.Depending on the facts of the particular case, unauthorized trading can result in claims for rescission, breac

ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust

of contract, or fraud.

Over concentration - This happens when a broker does not diversify your portfolio. One of the most important rules of investing is diversification. When a broker concentrates most or all of your funds in an individual investment o

y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products

type of investment, then your risk of loss dramatically increases. If a broker did this, and the investments declined significantly, the broker may be liable. For example, if your portfolio was heavily weighted to biotechnology stocks and those stocks dropped sharply, you may hav

.

As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de

a right to compensation, based on the broker's failure to diversify your investments and reduce your risk. Handling a stock fraud claim is a complex process. It will take an attorney considerable time and resources to gather all of the documentation, make a determination, and fil

elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip

the appropriate claim on your behalf. It is an undertaking that requires an attorney who is knowledgeable and skilled in working with the complicated laws and procedures that govern these actions, and in evaluating the documentation required to establish the true value of a claim

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

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Answers - Investment Fraud -- Most Common Investor Claims

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