Securities Litigation & Stock Broker Fraud
It's important to realize that rules apply when it comes to stock broker misconduct. For state law to be involved, it would probably have to rise to a criminal level – for example, someone stealing money. In that situation, securities arbitration lawyers say that a state would certainly have jurisdiction over that and can take action when a broker has been negligent or fraudulent. In addition, the NYSE (New York Stock Exchange), NASD (National Association of Securities Dealers) and the SEC (Securities and Exchange Commission) have their own set of rules that lay on top of the law of each state.
Statutes Of Limitation
Bringing a securities fraud action is only one step of the process – knowing when to bring it can be a separate issue altogether. There is a six-year eligibility rule that, in other words, the damage that was caused must have occurred within the last six years. For instance, you may have bought the stock seven years ago, but if it wasn't sold until two years ago, you can still come within that statute of limitations or statute of eligibility.
The Discovery Rule
Stock fraud lawyers say that many people don't realize they've been the victim of securities fraud until they're into their retirement and realize they have no money or less money than they should. However, the discovery rule states that the statute of limitations doesn't start to run (or is tolled) until you discover that you've been harmed.