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Many fund managers lost big money recently because they did not follow their trading strategies. Can clients take legal actions against them to get back their money? Have any one done that and the results?
Many fund managers lost big money recently because they did not follow their trading strategies. Can clients take legal actions against them to get back their money? Have any one done that and the results?
Thanks.
World is so big. Law is different for every country.
In what country are you interested?
I think it would be unlikely, unless changing strategies without notifying or consulting members is illegal. There may be a clause in your agreement that said they could do this.
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Both the fund manager and I are in the United States. I just have signed the POA without other documentations. The manager stated on an email that he would use SLs for all position to limit risk. He got big losses because he did not use SLs. Can he do that? Or can I win if I take legal action? Thanks.
It would be irresponsible of anyone to give you an answer without checking what docs you signed, but :
In the US contract law avails remedies for the agrieved party under a breach,namely - if the fund manager commited in writing to use stops and you have proof he did not - thus you have grounds for legal action, but again I would check the contract you signed on.
In New York - contract law is Iron Clad - so your chances are slim if you have a clause against you.
You may have other grounds such as negligence, or fraud, but again check the contract you signed on .
As fxprogrammer said in previous I believe the best for you is to go with a specialized lawyer.
Some days ago I´ve noticed that a fund manager in my country has to go to a NY court and testify due to request of CFTC under menace of extradition if he does not accept the request.
Seems he has been managing funds without clients authorization.
Thank you all for your advises. Since my losses may be less than the possible attoney fees, I want to know if I have a chance for legal action before I really take it.
The agurment I have with the fund manager is that he said that the SLs and other strategies he provided me were for me to monitor his performence so I can fire him if he did not follow them. He said strategies are not contract. Because we do not have other signed agreement other than the POA, I think his email strategies or SLs should be considered as part of agreement. Do I have a cause?
Thank you all for your advises. Since my losses may be less than the possible attoney fees, I want to know if I have a chance for legal action before I really take it.
The agurment I have with the fund manager is that he said that the SLs and other strategies he provided me were for me to monitor his performence so I can fire him if he did not follow them. He said strategies are not contract. Because we do not have other signed agreement other than the POA, I think his email strategies or SLs should be considered as part of agreement. Do I have a cause?
Thank you very much for all your suggestions.
Maybe you can contact other injured clients to reduce the attorney cost.
Maybe you can contact other injured clients to reduce the attorney cost.
I did know one of his clients who dose not think we can win. That is why I want to find out from here. Does any one have any experiences on this issue?
I did know one of his clients who dose not think we can win. That is why I want to find out from here. Does any one have any experiences on this issue?
I signed POA of OANDA and InterbankFX before. The other broker... I'm not sure. I'm well aware that the POA of OANDA and IBFX said neither the broker or the fund manager will be responsible for your ANY cause of losses by authorized another person to access to your account. You may be able to file a case of your fund manager promise to use SL and he actually did not. But hey! Who can prove the trade is not issued by the account holder or the fund manager? So, I would like to advice you to prepare for the worst if you still intend to file a lawsuit. You may lose the case, at the same time you could get a back fire from your fund manager.
Regards
David
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"All through time, people have basically acted and reacted the same way in the market as a result of: greed, fear, ignorance, and hope. That is why the numerical formations and patterns recur on a constant basis." - Jesse Lauriston Livermore
