Over-concentration occurs when your portfolio is too heavily focused on one particular investment. A few examples of investment over-concentration include:

  • Investing 100% of your portfolio in gold.
  • Purchasing only one stock rather than multiple mutual funds.
  • Investing all of your money in oil.

Any time a broker or investment professional fails to diversify your portfolio across multiple avenues of investment, you are in danger of investment over-concentration.

Did you lose money because your broker over-concentrated your portfolio?

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The Dangers of Over-Concentration

Any broker or financial institution should know the most fundamental rule of investing: diversify. As the old adage states, “never put all your eggs in one basket.” In other words, you need to spread out your investments to mitigate your risks. If you invest in multiple “baskets,” should something go wrong with one investment, you still have the others to help keep you afloat.

On the other hand, imagine what would happen if you invested all in a single stock. If the company hit hard times and the stock took a turn for the worse, you would be in danger of losing all your money. To do so would not only be unwise—it would be downright foolish.

Of course, as a novice investor, no one would expect you to know this, right? Instead, you hire a broker or financial institution to help avoid these pitfalls. Essentially you’re paying people a commission to ensure that you make wise investment decisions. But what happens when your broker makes these imprudent decisions?

Are You a Victim of Investment Over-Concentration

If your broker or financial institution over-concentrated or failed to diversify your investment portfolio, they may be liable for losses. Speak to an attorney. All consultations are free and confidential.

Our Reputation for Excellence

Gibbs Law Group’s financial fraud and securities lawyers have more than two decades of experience prosecuting fraud. Our attorneys have successfully litigated against some of the largest companies in the United States, and we have recovered more than a billion dollars on our clients’ behalf.

We have fought some of the most complex cases brought under federal and state laws nationwide, and our attorneys have been recognized with numerous awards and honors for their accomplishments, including Top 100 Super Lawyers in Northern California, Top Plaintiff Lawyers in California, The Best Lawyers in America, and rated AV Preeminent (among the highest class of attorneys for professional ethics and legal skills).

Our Securities Arbitration Team

Scott Silver

Scott focuses his law practice on securities arbitration and litigation and plaintiff-side class action litigation, representing individual investors and institutions in claims against brokerage firms, investment advisors, commodities firms, hedge funds and others.

Michael Schrag

Michael has over 20 years of experience representing individual and small business plaintiffs against the world’s large financial institutions, including Visa, Mastercard, and Chase.

Eileen Epstein

Eileen is involved in the firm’s securities practice and has over a decade of experience in the legal world. She received her law degree from American University in 2005.

David Stein

David’s advocacy has generated major recoveries for consumers impacted by financial fraud. He was named to the Top 40 Under 40 by Daily Journal and a “Rising Star in Class Actions” by Law360.

Amanda Karl

Amanda is spearheading a securities lawsuit against NantHealth concerning fraudulent statements to investors about the success of its key product.

Noteworthy Financial Fraud Cases

American Express Financial Advisors Securities Litigation $100 million cash settlement for clients alleging American Express steered them into under-performing “shelf space funds” to reap kickbacks
Chase Bank “Check Loan” Litigation $100 million settlement for consumers alleging Chase offered long-term fixed-rate loans, only to later more-than-double required payments
Peregrine Financial Group Customer Litigation Settlements worth $75 million for futures and commodities investors who lost millions in the collapse of Peregrine Financial Group, Inc.
NantHealth Court-appointed Co-Lead Counsel in a securities class action alleging the company’s founder violated federal securities law and artificially inflated stock prices