I have reason to believe that a security was bought by a broker for my account without my permission. It is now worthless. If this was done over 9 yrs ago would I be wasting my time to pursue this in small claims court as it will be dismissed? Thank you.
2 Answers from Attorneys
Yes, sorry, you would be wasting your time. Aside from being time-barred, your claim will fail because of the doctrine of ratification. Ratification means that if you notice an unauthorized trade in your account, you must object to it immediately. You cannot sit back and decide if it increases in value you will keep it, and if it loses you will sue or ask for the trade to be reversed.
I am afraid I have to agree with Mr. Simon. However, depending on the size of the trade, your profile and suitable investments in your portfolio, you may have a prayer, but by way of arbitration, not suit.
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