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 Securities Litigation & Arbitration
Complaints against stock
brokers; unauthorized trading;
unsuitable activity; excessive activity (churning); issues involving sales
practice abuse (misrepresentation and omissions issues, high pressure sales
tactics, etc.); and "order failure" cases (refusals to execute transactions).
Product areas: stocks,
options (equity and all index) and derivatives, excluding commodities futures
and options and the currency markets.
We help investors and attorneys in
securities arbitration matters of the NASD and NYSE. We help investors recover
losses due to abuses such as investment fraud, stockbroker fraud, unsuitability
of investments, and churning.
Most stock and bond losses are the result of market forces, economic factors,
and technical trends that have nothing to do with the advice you receive from
your stockbroker or advisor. However, if you have suffered losses due to bad
advice or wrongful action, you can sue your stockbroker and possibly recover
some or all of your losses.
Almost all brokerage firms require their customers to contractually agree to
submit all disputes to binding arbitration before some self regulatory
organization (SRO) such as the NASD, NYSE, or ASE. The new account form of a
brokerage firm, that is signed by investors, is the usual binding instrument
that requires arbitration for disputes. An investor can initiate a complaint and
can possibly recover losses through an arbitration proceeding. Discovering what
security rules were violated come through the analysis of monthly statements,
confirmations, and all correspondence. Some of the common complaints against a
broker are breach of fiduciary duty, churning (excessive trading), unsuitable
recommendations, misrepresentation, mutual fund switching, unauthorized trades,
and front-running.
In 2003, 54% of all arbitration cases that were heard before the NASD, resulted
in $132,000,000 of damages. In addition, $30,000,000 in punitive damages were
awarded. (Source: NASD) Note that this statistic does not include the many cases
which were settled in negotiation, prior to a hearing. It could possibly take up
to 15 months to settle a claim, if a hearing is required; however, many claims
are settled in only a few months, through negotiation.
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