Woodbury Financial Services has been embroiled in numerous controversies and legal actions, raising questions about their investment practices and their suitability as financial advisors. If you’ve entrusted them with your hard-earned money, you might be wondering if you’re affected.
A History of Concerns:
- Unsuitable Investments and Lack of Disclosure: In 2019, the Securities and Exchange Commission (SEC) sanctioned Woodbury for recommending higher-cost mutual fund share classes to clients, despite the availability of lower-cost options. This resulted in clients paying unnecessary fees and potentially losing out on returns. [Source 1]
- Unheeded Red Flags: In 2018, the firm faced allegations of failing to supervise a broker who engaged in unsuitable short-term trading, causing significant losses to clients. [Source 2]
- Retirement Mismanagement: A Florida couple received $850,000 in damages after an arbitration panel found Woodbury placed their money into unsuitable insurance and annuity products, jeopardizing their retirement income. [Source 3]
- Private Placement Issues: A couple from Utah filed a claim against Woodbury for losses incurred while investing in GPB Capital Holdings and other privately traded entities, highlighting potential risks associated with these complex investments. [Source 4]
Are You Affected?
If you have invested with Woodbury Financial and experienced losses, you may be eligible to recover your losses. However, due to arbitration clauses in many client agreements, seeking compensation often involves FINRA arbitration, a complex process with its own set of rules.
What You Can Do:
- Review your investment statements: Look for unfamiliar investments, high fees, and unexpected losses.
- Consult with an attorney specializing in securities arbitration: They can assess your case and advise on your options.
- Consider joining a class action lawsuit: This can provide a united front and potentially increase your chances of recovering losses.
Staying Informed:
As the situation with Woodbury Financial continues to unfold, it’s crucial to stay informed. Check with FINRA’s BrokerCheck tool for any disciplinary actions and monitor news updates for further developments.
While the legal process may be complex, understanding your rights and exploring available options can be the first step towards regaining your financial security. Remember, you don’t have to navigate this situation alone.
Sources:
[Source 1] SEC.gov: https://adviserinfo.sec.gov/firm/summary/421 [Source 2] MDF Law: https://mdf-law.com/ [Source 3] FA Mag: https://www.fa-mag.com/ [Source 4] Investor Lawyers: https://www.woodburyfinancial.com/