Q: What Is Securities Arbitration?
A: When you opened your investment account with your brokerage firm or investment advisor, it is very likely that you signed a form agreeing to submit any dispute to a binding arbitration rather than to file a securities lawsuit in State or Federal court. The securities arbitration process is very similar to that of a court proceeding with discovery by the parties, motions brought by parties on various legal issues and hearings help in front of the appointed arbitrators. The arbitration of broker/dealer disputes has been used for a long time in the securities law (*Link to Securities Law Page) arena and has benefits as well as drawbacks to potential investor claimants. While it can be a faster process than a State Court preceding certain rights are waived in arbitration. While securities arbitration can be faster and a less expensive way to resolve complicated investor disputes, the arbitration results are final and binding, and subject to only very limited court review.
The majority of securities arbitrations brought by investors against their broker/dealers are held in front of the Financial Investment Regulatory Authority ("FINRA") and take approximately one year from the filing of the investors statement of claim against the broker and/or brokerage and the issuance of an arbitration award by the panel selected to hear the case. During the pendency of the case, the securities fraud attorneys on both sides are engaged in selecting the panel members who will hear your claim based upon numerous factors including discovery of documents and information relevant to the disputes, motion practice, expert retention, hearing preparation, and finally attending the hearing of the claim, which most typically last from three to five days. It is also possible that the parties may agree to settle their dispute in Mediation prior to arbitration. The process resembles a full court proceeding and an experienced securities fraud attorney (*Link to Founder Page) is essential to a favorable investor result.
Q: I lost money in my investment account. Can I recover my investment loss from the broker/brokerage- do I have a claim?
A: The answer to this question usually requires consultation with an experienced securities lawyer in order to determine if any wrongful conduct by the broker or brokerage firm may be present. Unauthorized trading, churning, the sale of unsuitable investments and negligent misrepresentation (*Link to Fraud and Intentional Representation Page) are a few of the acts upon which recovery can be based. Contact our securities fraud lawyer (*Link to Contact Us Page) at the Carlson Law Firm for a free consultation if you feel you may have a claim against your brokerage.
Q: I don't think that my broker would do anything wrong, why would he/she?
A: Typically, brokers make money on your account(s) by buying and selling products or charging a flat percentage of the amount under management each year as a fee. Brokers' products are the investments they sell. Higher commissions and/or fees are usually provided for selling riskier investments. This system can lead to abuses and non-compliance with brokerage regulations (*Link to Brokerage Regulations Compliance Page). Even if the account is not commissioned based, incentives for the sale of certain products, for example proprietary products of the brokerage, can exist in addition to general failure to suitably manage the account(s) and result in fiduciary duty breach.
Q: Do I need a securities fraud attorney?
A: The majority of investor cases are handled through FINRA arbitration due to the arbitration agreement signed by each investor at the creation of a new account. Each step of the process involves legal disputes regarding matters such as discovery of evidence, admissibility of evidence, privilege, motions on various legal matters including the statute of limitations and other legal broker and brokerage disputes (*Link to FIRNA Arbitration / Broker & Brokerage Disputes Page) in addition to factual disputes. The broker and brokerage will have legal counsel representing them and so should you. Contact our securities fraud attorney (*Link to Contact Us Page) at the Carlson Law Firm for a free consultation.
Q: I feel like it's my fault - should I have known better?
A: Anyone can be taken advantage of if they do not have all the facts. The securities law is there to help you if your broker or brokerage was engaging in wrongdoing but it often takes the professional eye of a securities lawyer to make that determination. Don't assume it is your fault you suffered from stock fraud and investment losses (*Link to Stock Fraud and Investment Losses Page) if you suspect something.
Q: Do you charge a fee to evaluate my securities fraud claim?
A: No we do not. We offer a free meeting and securities fraud claim evaluation, either telephonically or in person. Our initial evaluation is free. Call the Carlson Law Firm at (619) 894-8509 to schedule an appointment today.
