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

Girard Gibbs’ 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 CaliforniaTop Plaintiff Lawyers in CaliforniaThe Best Lawyers in America, and rated AV Preeminent (among the highest class of attorneys for professional ethics and legal skills).

Our Securities Arbitration Team

Eric Gibbs

Eric has served in leadership positions in a number of high profile, complex financial lawsuits. He has been recognized as a Daily Journal, among the Top 100 Super Lawyers in Northern California, and a Law360 MVP for Consumer Protection.

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.

Michael Schrag

Michael has over 20 years of experience representing individuals in complex cases involving banking credit card and other financial frauds.

Amanda Karl

Amanda represents employees, consumers and investors in complex class action lawsuits nationwide. She was a law clerk to Hon. Richard A. Paez of the Ninth Circuit Court of Appeals, and to Hon. Claudia Wilken, Northern District of California.

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