Institutional Investors and Family Offices

When an investment raises concerns, we help you assess the legal issues and your next steps.

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Your organisation may have suffered losses after unexpected disclosure, found that an investment operates differently from what was described, or become unable to withdraw funds.

You may also be evaluating a proposed investment or deciding how to respond to a class action or settlement notice.

Led by Harold Geller and Matthew W. Taylor, the Sotos Investor Protection Group helps institutional investors and family offices assess investment disputes, recovery options and legal risks in complex investments.

We work with pension funds, asset managers and family offices, taking account of their investment and governance responsibilities.

When Does an Investment Deserve a Closer Look?

Not every investment loss means that someone did something wrong. Markets can fall, and even an appropriate investment can lose value.

A closer review may be worthwhile when the loss or the investment’s conduct does not match its disclosure, the agreed terms or what your organisation was told.

You may want legal advice if:

important information about an issuer or fund appears to have been misleading;
fees, investment practices or risks differ from the offering documents;
money is locked up or redemption rights are disputed;
transactions suggest possible fraud or misuse of assets; or
a proposed class action or settlement affects your investments.

Who May Be Responsible for an Investment Loss?

A review may involve the issuer, fund manager, advisor or another party, depending on the investment and the alleged conduct.

We consider offering documents, financial statements, account records and communications to assess what was represented, what happened and how the losses arose.

Public-company disclosure and fund-management concerns may involve our Securities Litigation practice. A possible claim involving a private company may also require assessment of ownership and governance rights, including potential oppression or derivative proceedings.

Should You Participate in a Class Action or Pursue Another Route?

The appropriate route depends on the alleged wrong, the losses, the evidence and whether other investors were affected. It may involve an individual claim, coordinated proceedings or participation in a class action.

Institutional investors may need to evaluate whether to participate or opt out. We can advise on those choices, litigation participation policies and monitoring proceedings affecting a portfolio.

We can also assist with settlement claims and, where appropriate, assess proposed settlement terms and legal fees. Collective securities proceedings are supported by Sotos Class Actions. See our investment-loss recovery options for the broader range of routes.

Can a Family Office Obtain Legal Advice Before Investing?

Yes. A family office considering a complex investment may want an independent review of the offering and subscription documents before committing funds.

We can review the proposed structure, potential conflicts and relevant regulatory risks, including issues involving novel or offshore arrangements. Legal opinions can identify questions that warrant further investigation.

The scope of that work should be agreed with the family office and coordinated with its investment and other professional advisers.

Read more about Advisor fees, commissions and conflicts.

What If You Suspect Fraud or Cannot Access an Investment?

Preserve the investment documents, transaction records and communications that explain what happened. We can assess possible civil claims and whether steps to investigate transactions or preserve assets should be considered.

Depending on the circumstances, this may involve asset tracing, forensic accountants and consideration of urgent court relief.

See our pages on private, gated and complex investments and investment fraud.

Can We Work With Your Existing Professional Advisers?

With your authority, we can coordinate with accountants, tax advisers and other professionals to obtain records, investigate concerns and assess losses.

Forensic accounting can assist with tracing transactions or damages analysis where the matter requires it. This allows the legal review to draw on the information and expertise already available to your organisation.

What Documents Can Help?

Keep offering and subscription documents, account statements, payment records and communications about the investment. Preserve any notices relating to litigation or settlements.

Note the investment involved, the losses or inaccessible funds, and any pending notices or deadlines. We can explain which further records may be useful.

Investor Protection Experience, Backed by Litigation Strength

Harold Geller brings more than 30 years of investor-protection, financial-services and complex-product experience.

Matthew W. Taylor brings complex investment, securities and class action litigation experience, particularly where losses affect many investors or involve several potential defendants.

Frequently Asked Questions

Does an investment loss automatically give us a legal claim?

No. A loss alone does not establish wrongdoing. The assessment considers the documents, the alleged conduct, who may be responsible and the connection to the loss.

Do we have to join a class action?

Not necessarily. Participation, opting out and other possible routes should be assessed in the context of the particular proceeding and your organisation’s circumstances.

Can you advise before a family office commits to an investment?

We can discuss a legal review of the proposed investment documents and structure, including questions about conflicts or regulatory risks. The scope and fees are agreed before further legal work proceeds.

Do we need every document before contacting you?

No. Start with the investment, the concern and the records you have. We can explain which further documents may be useful.