Mr. Cooper Group COOP Lawsuit

Mr. Cooper Group (COOP) Lawsuit “FINRA”

The Haselkorn & Thibaut, P.A. law firm is a nationwide investment fraud law firm investigating potential sales practice violations by financial advisors who were recommending COOP and other mortgage and/or real estate related securities to investors.

The recent trading in COOP has been in the $6.00/share range. Looking back, COOP began  2020 in the $12.00/share range. Prior to that, for most of 2019, COOP was trading over $9.00/share.

Mr. Cooper Group Inc. (Symbol COOP) – provides servicing, origination, and transaction-based services related principally to single-family residences in the United States. The company operates through Servicing, Originations, and Xome segments. It operates primarily under the Mr. Cooper and Xome brands. The company was formerly known as WMIH Corp. and changed its name to Mr. Cooper Group Inc. in October 2018. Mr. Cooper Group Inc. is based in Coppell, Texas.

COOP Lawsuit “FINRA”

The Haselkorn & Thibaut, P.A. law firm is a nationwide investment fraud law firm (www.investmentfraudlawyers.com) investigating potential sales practice violations by financial advisors who were recommending COOP and other similar mortgage and real estate-related securities sold to investors.

For investors, this is a particularly tough blow as these are the types of investments that were often recommended by financial advisors to clients who were looking for income in their portfolios (often retirees or similarly conservative investors).  This was likely a recommendation that was expected to be low volatility and fairly conservative, now investors are faced with substantial losses as a result of a level of risk to their original investment principal that was probably never properly disclosed (if it was ever disclosed at all) by their financial advisors.

As some strategies are leveraged in the hopes of increasing potential returns, they also increased the level of risk, and some investors may not have been advised of those potential risks as well.  Although Financial advisors may claim that these were unforeseen market events, the reality is that these are similar risks to those experienced in the 2008-2009 financial crisis.  These potential risks were material risks that should have been properly disclosed to clients before recommending these investments individually or as part of a portfolio or investment strategy.

Many of these investments were sold by financial advisors without proper risk disclosures, as these are considered very risky and complex (some even speculative because of the leverage) securities.  In cases where these were recommended to retirees or similar conservative income-seeking investors there is the potential for sales practice abuse as a result of misrepresentations, but more often as a result of omissions of material fact, or due to a lack of proper supervision.

COOP Investors Seeking to Recover Losses

For some investors, a private FINRA arbitration customer dispute enables them to bring a claim and potentially recoup their investment losses.  These customer disputes typically involve only paper discovery and no depositions, and they are generally faster and more efficient compared to traditional court litigation, as they provide a private forum to resolve disputes more quickly and efficiently.

About Haselkorn & Thibaut, P.A.

Haselkorn and Thibaut, P.A. is a nationwide law firm specializing in handling investment fraud and securities arbitration cases. The law firm has offices in Palm Beach, Florida, on Park Avenue in New York, as well as in Phoenix, Arizona and Cary, North Carolina.  The two founding partners have nearly 45 years of legal experience.

Haselkorn & Thibaut, P.A. has filed numerous (private arbitration) customer disputes with the Financial Industry Regulatory Association (FINRA) for customers who suffered investment losses relating to issues similar to those matters mentioned above. There are typically no depositions involved, and those cases are typically handled on contingency with no recovery, no fee terms.  Experienced attorneys at Haselkorn & Thibaut, P.A. are available for a free consultation as a public service.

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