Negligent Advice

The Tort of Giving Negligent Investment Advice
 
Prof. Lipner, together with Prof. Lisa Catalano of St. Johns University Law School, have published their research of an important recent development in the law affecting investor rights, the development of a claim against brokers for giving negligent advice, and they have penned a 25,000-word scholarly article based on that research.
 
Titled "The Tort of Giving Negligent Investment Advice", this article is a groundbreaking study of the common-law responsibility of investment advisors to exercise due diligence when providing advice to their clients. The article chronicles the development of the tort of negligent misrepresentation, from its inception in a series of watershed New York cases, through the creation of Restatement (Second) Torts 552, and culminating in analysis of how the courts around the country have applied these concepts to the specifics of securities brokers, investment advisors and others involved in either promoting investments or providing information about them.
 
This article fills a gap in the literature, and shows how the law has recently coalesced to create a new "tort" - wrongful conduct that creates a civil remedy.
 
In researching and writing this piece, the authors have combined their experience as practitioners with their talents as academics and legal scholars. In doing so, they are able to expound authoritatively on the recent developments that have caused the law in this area to coalesce and advance.
 
The article can be found at 39 U. Mem. L. Rev. 663