My 78 year old mother (in California) was being manipulated by her investment broker to invest in extremely risky investments. The broker actually gave my mother a prepared document to sign which implied she could financially withstand the risk. All along, my mother clearly did not understand her investments and had been relying on the broker for his professional advice.
The investment went bankrupt and she lost 2/3 of her portfolio. The broker then proceeded to have my mother sign up for a bankruptcy settlement which purported to waive her rights to sue. Currently, my mother's attorney is saying she cannot sue her broker for malpractice since she signed this "waiver."
It does not seem as if she received anything for signing over her right to sue her broker. I understand she received value when she signed over her right not to sue individually for the bankruptcy, but she never received anything for giving up her right to sue her broker.
Is it legal that she would be required to give up both without just compensation? Please note, her broker told her that she should sign the waiver in order to get her money back. It seems as if he had an unjust interest in convincing her to give up her right to sue him. Please let me know if there is anything that can be done. Thanks.