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FINRA Arbitration: Recovering Investment Losses
When investment professionals breach their duties to investors, FINRA arbitration provides a powerful path to recovery. Our investment fraud attorneys have recovered tens of millions in damages for clients through the Financial Industry Regulatory Authority (FINRA) arbitration process. We handle cases involving unsuitable investments, unauthorized trading, misrepresentation, and other forms of securities fraud.
Why Choose FINRA Arbitration?
FINRA arbitration offers several advantages over traditional court litigation for investment loss recovery. This streamlined process typically resolves faster than court cases, usually within 9-12 months. Additionally, FINRA arbitration is generally more cost-effective and provides a specialized forum where arbitrators understand the complexities of securities law and investment products.
Our FINRA Arbitration Experience
Our investment fraud attorneys bring decades of combined experience representing investors in FINRA arbitration proceedings. We have successfully handled numerous cases involving unsuitable investment recommendations that failed to align with our clients’ risk tolerance and financial goals. Our practice regularly addresses excessive trading schemes, also known as churning, where brokers generate unnecessary commissions through frequent trading. We pursue cases of unauthorized transactions where brokers made trades without proper client approval. Our attorneys have extensive experience with cases involving misrepresentation and omission of material facts about investments, as well as dangerous over-concentration in high-risk investments. We also specialize in cases involving failure to supervise brokers, elder financial abuse, and complex Ponzi schemes and fraudulent investment structures.
Preston L. (attorney)
Joan P. (attorney)
The FINRA Arbitration Process
When you choose our firm to handle your FINRA arbitration case, we guide you through every step of the process.
Initial Case Evaluation
Our investment fraud attorneys begin with a comprehensive review of your account statements, trade confirmations, and communications with your broker or advisor. We analyze trading patterns, investment selections, and account performance to identify potential violations of securities regulations and industry standards.
Filing the Statement of Claim
We prepare and file a detailed Statement of Claim that outlines your losses and the specific ways your broker or investment advisor violated their obligations. Our attorneys craft compelling arguments supported by documentary evidence and industry regulations.
Discovery Phase
During the discovery phase, we conduct a thorough investigation to gather additional evidence supporting your claim. This includes obtaining internal brokerage firm documents and compliance materials that demonstrate proper procedures were not followed. We collect all communications between brokers and their supervisors that relate to your account. We examine account opening documents to establish your investment objectives and risk tolerance. We also analyze detailed trading records and position reports to document patterns of misconduct.
Expert Analysis
Our firm works closely with financial experts to strengthen your case through sophisticated analysis. These experts calculate precise trading losses and damages while analyzing whether investments were suitable for your situation. They evaluate portfolio concentration levels and assess risk exposure compared to your stated objectives. Their analysis documents specific violations of industry standards and quantifies the impact on your portfolio.
Hearing Preparation and Representation
Our investment fraud attorneys prepare meticulously for your arbitration hearing. We develop compelling presentation strategies that clearly demonstrate the misconduct and your resulting losses. Our team creates detailed exhibits and demonstrative evidence to support your case. We conduct thorough witness preparation sessions to ensure testimony is clear and effective. Through carefully crafted opening and closing arguments, we present your case persuasively to the arbitration panel. Our experienced litigators also prepare extensively for cross-examination of opposing witnesses to challenge their credibility and expose inconsistencies.
Types of Recoverable Damages
Through FINRA arbitration, investors can recover several categories of compensation for their losses. Direct investment losses form the foundation of most claims, representing the actual money lost due to misconduct. We also pursue lost opportunity costs, which represent gains you would have realized in appropriate investments. Market-adjusted damages account for how your portfolio should have performed in prevailing market conditions. We seek recovery of account fees and commissions wrongfully charged to your account. In certain cases, attorney fees may be recoverable. When conduct is particularly egregious, we pursue punitive damages to punish and deter misconduct.
Time Limitations for Filing Claims
FINRA generally requires claims to be filed within six years of the events giving rise to the dispute. However, various factors can affect this timeline. The discovery of fraud may extend the period during which you can file a claim. Continuing patterns of misconduct may also impact filing deadlines. State-specific statutes of limitations may apply to certain aspects of your case. Additionally, contractual limitations periods in account agreements may affect timing considerations. We encourage investors to consult with our investment fraud attorneys promptly after discovering potential misconduct to ensure their claims are preserved.
Common Questions About FINRA Arbitration
How much does FINRA arbitration cost?
Our firm handles FINRA arbitration cases on a contingency fee basis, meaning we only receive payment for our attorney fees if we recover money for you. Case costs can vary based on the amount of damages and the steps necessary to achieve a positive result. Please contact us to find out more.
How long does FINRA arbitration take?
Most FINRA arbitration cases resolve within 9-12 months from filing to final award. Simple cases may conclude sooner, while complex cases involving multiple parties or extensive documentation may take longer.
What are my chances of success?
Success rates depend on various factors, including the strength of evidence, size of losses, and specific conduct involved. Our investment fraud attorneys carefully evaluate each case and provide honest assessments of recovery potential before proceeding.
Do I have to appear at the hearing?
While many cases settle before hearing, you may need to testify if your case proceeds to a final hearing. Our attorneys thoroughly prepare you for testimony and support you throughout the process.
What can I recover?
Recovery amounts vary based on factors including the strength of liability evidence and size of investment losses. The availability of supporting documents plays a crucial role in determining recoverable amounts. The respondent's ability to pay and overall market conditions during the relevant period also impact potential recovery. Our attorneys provide detailed assessments of potential recovery based on these and other relevant factors.
Contact Our Investment Fraud Attorneys
If you’ve suffered investment losses due to broker misconduct or securities fraud, our experienced FINRA arbitration attorneys can help evaluate your claim. Contact us for a free consultation to discuss your case and recovery options.
We represent investors nationwide in FINRA arbitration proceedings against brokerage firms and financial advisors. Our track record of success and deep understanding of securities law positions us to effectively advocate for maximum recovery of your investment losses.