Can You File a Stock Market Coronavirus Impact Lawsuit?

If you were misled by a financial advisor about investing during the pandemic, you may be able to file a coronavirus investment impact lawsuit.

What Is the Coronavirus’ Financial Impact?

The financial impact of the coronavirus has been widespread and complex, affecting businesses and everyday consumers alike.

Globally, travel and shipping has been severely restricted due to the coronavirus. Even as businesses attempt to return to the normalcy of pre-pandemic days, some industries like travel and tourism will be unable to resume their operations any time in the near future.

Locally, many businesses have been forced to close their doors due to the coronavirus, causing a sharp hit to their profits and leading to reduced hours or even mass layoffs. Due to these changes, many Americans have lost their job due to the pandemic. As a result, they may have had to dip into their savings or seek unemployment benefits to cover their bills.

Adding in the financial strain of potential healthcare and other COVID-19 related costs, Americans may be drowning under the weight of their financial obligations. In fact, an NPR survey shows that 46% of people around the country report having serious issues with their finances during the outbreak.

To make matters worse, consumers may have lost significant amounts of money in investments during the pandemic.

Has the Stock Market Been Affected by the Coronavirus?

The stock market coronavirus impact has been equally as severe as those impacts seen on businesses and working Americans.

In March, it was revealed that several stock markets around the world suffered their worst quarterly losses in decades. The Dow Jones Industrial Average reportedly dropped 23% – its largest quarterly losses since 1987. Similarly, the S&P 500 lost 20% in the first quarter of the year – its worst performance since the 2008 market crash.

Chinese researchers published their own study in April corroborating these losses and predicting further hardship as the pandemic continues. According to the study’s conclusion, global markets have increased in risk while individual stock markets tend to be linked to the severity of a country’s coronavirus outbreak.

“The virus has already claimed thousands of lives and brought significant challenges to countries from all over the world. The financial markets have seen dramatic movement on an unprecedented scale,” researchers concluded.

“The great uncertainty of the pandemic and its associated economic losses has caused markets to become highly volatile and unpredictable.”

Although the markets have started to recover since their sharp drops this spring, consumers may still be reeling from the sudden losses they may have sustained.

Were You Misled About Your Best Investing Options?

Although no one could have predicted the coronavirus or its catastrophic impact on the global stock market, financial advisors may have misled their customers about the best course of action during the pandemic.

Financial advisors have a variety of responsibilities including investments, taxes, and plans to reach financial goals. A large amount of trust is placed in these advisors – trust which can easily be abused by an unreliable professional.

For example, pushing unnecessary products, failing to diversify a portfolio, and encouraging large loans from retirement savings can all be signs that a financial advisor isn’t acting in your best interest. If these suggestions resulted in tangible losses during the coronavirus outbreak, you may be entitled to take legal action.

Can You File a Stock Market Coronavirus Impact Lawsuit?

Financial advisors who gave negligent advice to their customers may have breached their legal obligations. Specifically, fiduciary financial advisors are legally required to act in their client’s best interests. This fiduciary duty includes advisors to act in good faith and follow the Regulation Best Interest practices including:

• Disclosure Obligation: Financial advisors must provide required disclosures before or at the time of making recommendations.
• Care Obligation: Financial advisors must use reasonable diligence, care, and skill when making financial recommendations.
• Conflict of Interest Obligation: Advisors must address conflicts of interest through written policies and procedures that are maintained and enforced.
• Compliance Obligation: Financial advisors are required to comply with Regulation Best Interest guidelines through written policies and procedures.

Financial advisors are also required to comply with current requirements for record making and recordkeeping.

If your fiduciary financial advisor failed to follow these guidelines, you may be entitled to monetary compensation. By filing a lawsuit against your advisor, you may be able to collect damages, interest, and other financial benefits. An experienced attorney can help evaluate your case to see if you’re eligible to take action.

Free Coronavirus Financial Impact Claim Evaluation

If you followed the advice of a financial advisor during the COVID-19 pandemic and lost money as a result, you may be eligible to file a coronavirus financial impact lawsuit and seek compensation for your losses.

Get a Free Case Evaluation