Of course, one of the tasks of a law firm advising on banking and capital market law is to address the legal needs of clients arising in connection with asset management services when an investment has failed or threatens to fail or when potential claims on that basis must be reviewed.
In such cases, the question often arises whether at the time the contract was signed the investors or capital providers had all essential information at their disposal in order to make an informed decision. Any time an investor makes an investment without the necessary information and unexpected risks materialize later, banks, advisors, or brokers may have provided incorrect advice or inadequate information.
However, we expressly disavow sweeping statements made by many so-called “investor protection firms” on this issue in an attempt to attract media attention in mass damage cases. Especially if a circular is sent to investors with the help of so-called “investor protection associations” (which are often financed by law firms), caution is warranted. For this modus operandi not only circumvents professional standards prohibiting sending unsolicited correspondence to aggrieved parties (so-called cold acquisition), but in many cases such correspondence urges investors to assert their (purported) claims on the basis of questionable allegations.
Notwithstanding countless attempts to make investors believe otherwise: In the vast majority of cases, the chances that a legal action will succeed ultimately depends on the circumstances of each case and, in particular, on the ability to prove certain circumstances. The days when it was possible to win court cases without effort in a large number of cases, for example on the basis of a deficient prospectus, are (long) gone.
At WSHP, we therefore take all pertinent circumstances into account when assessing the chances of success in cases where an investment does not perform as predicted. This also includes an assessment of the economic prospects, because even if the legal prospects are good, a law firm should always assess whether the responsible parties are even in a financial position to settle the claims in question. In other words, the potential rewards must be weighed against the risks.
This applies also, and in particular, to personal liability of advisors and brokers. These parties are often subjected to claims that lack merit or are not supported by sufficient evidence.
If, in the end, a failed investment requires litigation, we will, of course, represent you in all related proceedings and pursue all procedural avenues available to us. We defend as well as enforce claims for damages under applicable investment laws.
The only question that matters to us is whether there is a valid basis for enforcing or defending a legal position. Therefore, we make our extensive experience available to all good-faith market participants. This means we represent providers (banks and financial services providers, advisors and brokers) as well as parties concerned about their investments (professional/institutional investors, but also private individuals), if investment-related financial damages have occurred or are imminent.
Especially in this area, you will benefit from the extensive litigation experience of our lawyers.