The stock my broker sold me in an initial public offering went to zero after the sec accused the company of fraud. What are my options?
You may well have a claim against the issuing company, its officers and directors, and controlling shareholders and all the underwriters including your brokerage firm.
If the prospectus or registration statement contained false statements of a material fact, or was misleading, you may be entitled to "recession" and damages. See more information under the topic head, Securities Law.
As with all complaints, quickly talk with your broker, put your concerns in a letter addressed to the broker, his manager and the compliance director or president of the brokerage firm. Keep a copy of the letter for your files.
It is possible that the claim against the issuing company (and others not associated with your broker) may be taken to court.
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