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FINRA Securities 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 disputes involving unsuitable investments, unauthorized trading, misrepresentation, and other forms of securities fraud.
Why Choose FINRA’s Arbitration Process?
FINRA securities arbitration offers several advantages over traditional civil litigation for investment loss recovery. This streamlined process typically resolves disputes faster than court cases, usually within 9-12 months. Additionally, FINRA’s 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 disputes involving unsuitable investment recommendations that failed to align with our clients’ risk tolerance and financial goals. Our practice regularly addresses:
- Excessive trading schemes (churning) where brokers generate unnecessary commissions
- Unauthorized transactions where representatives made trades without proper client approval
- Misrepresentation and omission of material information about investments
- Dangerous over-concentration in high-risk investments
- Failure to supervise brokers and industry compliance issues
- Elder financial abuse in the securities industry
- 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 securities 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 through FINRA’s portal.
Discovery Phase and Evidence Collection
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
- Collecting all communications between representatives and their supervisors that relate to your account
- Examining account opening documents to establish your investment objectives and risk tolerance
- Analyzing detailed trading records and position reports to document patterns of misconduct
- Requesting relevant industry data and published information that supports your case
Expert Analysis
Our firm works closely with financial experts to strengthen your case through sophisticated analysis. These experts:
- Calculate precise trading losses and damages
- Analyze whether investments were suitable for your situation
- Evaluate portfolio concentration levels and assess risk exposure compared to stated objectives
- Document specific violations of industry standards
- Quantify the impact on your portfolio
Prehearing Conferences and Preparation
Before the FINRA arbitration hearing, parties participate in prehearing conferences where procedural issues are resolved. Our team ensures all necessary information is properly exchanged and prepares meticulously for your arbitration hearing. We develop compelling presentation strategies that clearly demonstrate the misconduct and your resulting losses.
FINRA Arbitration Hearing and Decision
During the FINRA arbitration hearing, our experienced litigators present your case persuasively to the arbitration panel. We create detailed exhibits and demonstrative evidence while conducting thorough witness preparation sessions. Through carefully crafted opening and closing arguments, we effectively advocate for your rights before the arbitrators who will make the final decision. Our attorneys also prepare extensively for cross-examination of opposing witnesses to challenge their credibility and expose inconsistencies.
Arbitration Awards and Enforcement
Once arbitrators render their decision, FINRA arbitration awards are typically final and binding on all parties. If necessary, our firm assists with the enforcement of arbitration award payments by working through appropriate legal channels.
Types Of Recoverable Damages
Through FINRA arbitration, investors can recover several categories of compensation for their losses:
- Direct investment losses representing actual money lost due to misconduct
- Lost opportunity costs representing gains you would have realized in appropriate investments
- Market-adjusted damages accounting for how your portfolio should have performed in prevailing market conditions
- Account fees and commissions wrongfully charged to your account
- Attorney fees (in certain cases)
- Punitive damages when conduct is particularly egregious
Alternative Dispute Resolution: FINRA Mediation
In addition to arbitration, FINRA offers mediation as an alternative dispute resolution option. Mediation involves a neutral third-party mediator who helps parties reach a mutually acceptable settlement. While FINRA arbitration results in a binding decision by arbitrators, FINRA mediation empowers parties to create their own resolution to the dispute. Many investors find that mediation can resolve their dispute more quickly and with more flexibility than formal arbitration. Our firm represents clients effectively in both FINRA’s arbitration and mediation processes.
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:
- Discovery of fraud may extend the period during which you can file a claim
- Continuing patterns of misconduct may impact filing deadlines
- State-specific statutes of limitations may apply to certain aspects of your case
- 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 under FINRA’s code of arbitration procedure.
For more information about FINRA securities arbitration or to discuss your potential case with one of our experienced attorneys, please contact our office today.
Ready to Talk?
Please reach out to our team so we can privately discuss your situation. We’ll review the facts of your matter and discuss how we can help you. We pride ourselves on always being compassionate and respectful.
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.