Houston Stock Fraud Attorney
What Is Stock Fraud?
Stock fraud occurs when corporations and corporate insiders prioritize their own profits over the interests of their shareholders. By misleading shareholders, corporations put shareholders' investments at risk.
Corporate stock fraud by misrepresentation occurs when investors or insiders:
- Manipulate stock value by falsifying information on a company's financial statement and SEC filings
- Lying to corporate auditors
- Through the public statements of misleading information.
Insider trading, another form of corporate stock fraud, is the trading of a corporation's stock or other security by corporate insiders such as officers, key employees, directors, or holders of more than ten percent of the firm's shares. In illegal insider trading, an insider or a related party trades based on material non-public information obtained during the performance of the insider's duties at the corporation, or otherwise misappropriated.
Fraud involving corporate stock options is increasingly common. Stock options grant the holder the option to buy stock a date in the future with the purchase price being fixed at the date the option is granted. If the stock's value increases before the purchase option is exercised, the holder profits from exercising their stock purchase option. Stock options fraud occurs when corporate executives backdate the granting of their stock options, essentially guaranteeing a profit as soon as the option is granted. This manipulation is unfair and defrauds other shareholders.
Contact a Stock Fraud Lawyer in Houston, TX
At Arnold & Itkin LLP, the Houston business attorneys fight aggressively for the rights of our clients. If you have been a victim of stock fraud perpetrated by officers, shareholders, directors, or other company insiders, you have rights. We can help you recover losses from the corporate fraudsters who are responsible.
Contact a Houston stock fraud attorney immediately if you have been victimized by fraudulent activities.