300 North Martingale Road, Suite 725
Schaumburg, IL 60173
(224) 353-6346
550 W. Washington Blvd., Suite 201
Chicago IL 60661
(224) 353-6346

On February 23, 2017, Attorney Jennifer Kimball appeared in front of the U.S. Court of Appeals for the Seventh Circuit to argue in support of a jury verdict obtained in September 2015. On August 9, 2017, a panel of Judges Posner, Easterbrook, and Manion affirmed the jury verdict in favor of T & K’s client who lost a large sum of money after the client’s broker invested in risky derivative securities. The jury ruled in favor of the plaintiff for breach of contract, breach of fiduciary duty, and liability under the Section 10b of the Securities Act of 1934 and Rule 10b-5 of the Securities Exchange Commission. The Appellate Court made special mention of T & K’s argument that options trading can be used as a hedging tool, and therefore a client who permitted options trading does not necessarily assent to high risk investment. The Appellate Court also agreed with T & K that liability under Rule 10b-5 is not limited to improper pricing, but rather to any type of fraud, including misrepresentations made to induce an investor to retain his broker. This ruling will provide much needed protection to investors who rely on their brokers to listen and understand their investment goals and to faithfully exercise their fiduciary duties. Trivedi & Khan is proud of its appellate practice and the team effort of attorneys Zubair Khan, Jennifer Kimball, Kashyap Trivedi, and paralegal Jessica Howell.