A disagreement which led to a court decision. Indeed, the Walloon Brabant business court ordered a Belgian bank to pay compensation of several thousand dollars to one of its clients, after a recommendation deemed erroneous, according to information from the newspaper l’Écho.
Nadal and Alcaraz in Las Vegas, a media coup for Netflix, which in turn launches into the battle for sports rights
The latter indicates that in 2017, the client owned 1,750 Netflix shares, acquired at a low price of $3 each. By that time, the stock had quickly climbed to $180. It was then that the bank’s financial advisor, authorized to issue personalized recommendations, visibly suggested selling these shares, based on an opinion from another asset management company. Following this recommendation, the client sold his securities at $233, pocketing a capital gain of $408,000.
A value that has risen significantly since
However, in the following months, Netflix stock saw its price rise to $400 in 2018, then to over $600 in 2021, reaching $717.43 to date.
The client, believing that he had been poorly advised, decided to take the matter to court, demanding restitution for his actions. The bank disputed this request, saying it had only provided an “opinion” and not true “advice”.
But the judge rejected this distinction, finding that, for a consumer, the line between “opinion” and “advice” was not clear. The court concluded that the bank had misled its client and ordered it to pay compensation of 30,000 dollars (converted to euros).
How Netflix made all the developers in the world work on its algorithm which recommends films and series
Both parties will appeal
The customer, dissatisfied with the amount, appealed, as did the bank, which believes it has no responsibility in this matter. The new judgment is not expected for several years. Please note, however, that opinions and other advice on asset management are not an exact science and that the bank could argue this during the call.
