Securities Arbitration & ADR

  • Recovering over $12 million for a major global bank (and dismissal of employee counterclaims) after a series of arbitration hearings seeking enforcement of notes with their former employees.
  • Obtaining favorable settlement for a major global bank in a $20 million sales practice arbitration.
  • Obtaining dismissal for a broker-dealer client after a hearing in a $2 million sales practice arbitration.
  • Obtaining an expungement award after a hearing on behalf of the president of a mid-sized broker-dealer.
  • Defending client against “selling away” allegations.
  • Obtaining favorable settlements and awards for a wide-range of broker-dealer clients in other FINRA arbitrations nationwide involving sales practice, trading, employment, due diligence and other disputes.

Looking Forward

In light of the increased volatility in the financial markets in the last quarter of 2018, it appeared that securities arbitration filings were poised to increase. But the markets stabilized, and stock prices continued to climb. New case filings with FINRA decreased from January through September 201, falling by 12% compared to the same time period in the prior year. If the markets suffer reversals, new filings will inevitably grow. As investors transfer more of their assets to registered investment advisors (RIAs), we are seeing more claims filed in the AAA, the dispute resolution forum contained in many RIA customer agreements. We expect that trend to continue in 2020. Broker-dealers are also likely to face increased claims resulting from the SEC’s enactment of Regulation Best Interest (BI), which firms must comply with by June 3, 2020. New claims  are likely to arise because of the higher standard Regulation BI imposes on brokers, requiring them to recommend to their customers financial products that are in their customer’ best interests and to identify clearly any potential conflicts of interest and financial incentives the brer-dealer may have in recommending those products.