A large investment loss is painful. It is also not, by itself, proof that a broker or financial adviser did anything wrong.

When deciding whether to review a potential case, a law firm has to look beyond the number on an account statement. It needs to consider what caused the loss, what the records show, and whether the facts support a legal claim.

For that reason, Sonn Law Group generally prioritizes investment-loss matters involving at least $100,000 in documented losses that may be connected to broker, adviser, or investment misconduct.

That figure is a preliminary law firm intake guideline. It is not a FINRA filing requirement, a legal test, or a promise that the firm will accept a case. The facts still matter.

Why use a $100,000 screening figure?

Securities cases can require substantial investigation. The legal team may need to review account records, communications, recommendations, product documents, and the history of the investment. It also has to assess whether the alleged conduct caused the loss and whether a meaningful recovery may be available.

A screening guideline helps the firm focus its initial review on matters that may justify that work. It does not mean that every claim above $100,000 has merit, or that every claim below it is legally invalid.

The number is a starting point for evaluating a matter, not the conclusion.

The amount lost is not always the amount at issue

An account may have fallen by $150,000 during a difficult market. That decline alone does not establish that a broker’s conduct caused $150,000 in recoverable losses.

The review may need to distinguish between general market declines and losses potentially tied to specific conduct, such as an unsuitable recommendation, unauthorized trading, excessive concentration, or a failure to disclose material risks. The appropriate analysis depends on the investment, the account, and the evidence.

In practical terms, these are different figures:

  • Account decline: How much the account’s value fell.
  • Out-of-pocket loss: What the investor put in, adjusted for sales and distributions.
  • Potentially recoverable loss: The amount that may be linked to legally actionable conduct, after a fact-specific analysis.

These figures can overlap, but they are not automatically interchangeable. A lawyer cannot reliably assess a potential claim from a headline loss amount alone.

What records help make an initial review useful?

Investors do not need to solve the legal issues before contacting a lawyer. But a few basic records can make the first review more focused:

  • Recent and historical account statements
  • The dates and amounts of investments or transactions
  • Written recommendations, emails, and messages with the broker or adviser
  • Documents describing the investment and its risks
  • A short timeline of what happened and when
  • The names of the broker, advisory firm, and investment product

Do not delay seeking advice just to assemble a perfect file. Important deadlines may apply, and those deadlines depend on the claims and circumstances. An attorney should review timing promptly.

What if the losses are below $100,000?

A matter below the guideline will generally be a lower priority as a standalone claim. It may still merit review when there are related investors, a broader pattern of alleged misconduct, or other case-specific factors that change the analysis.

FINRA’s rules also use claim amounts for procedural purposes. For example, the amount in dispute can affect the arbitration format and the number of arbitrators. Those procedural rules do not determine whether a claim has merit or whether a law firm will take it. (FINRA Customer Code, Rule 12401)

The right first question

Instead of asking only, “How much did I lose?”, ask:

What happened, what records support it, and how much of the loss may be connected to that conduct?

A claim with a large loss but little evidence may present different issues from a smaller loss supported by clear records and a broader pattern. The initial dollar figure helps determine whether a matter should be reviewed. It does not replace legal analysis.

If you believe your investment losses may have resulted from broker, adviser, or investment misconduct, Sonn Law Group can review the available information and discuss possible next steps. Matters are evaluated individually. No particular result or recovery is guaranteed.