Stockbroker fraud or fraud in connection with the sale of securities, such as churning, failure to supervise, suitability and other violations, is prohibited under the laws of all states as well as by federal laws. However, many brokerage firms require their clients to contractually agree to submit all disputes arising in connection with their securities accounts to binding securities arbitration before a forum sponsored by a Self Regulatory Organization, such as FINRA which was formerly the American Stock Exchange, the New York Stock Exchange, or NASD Regulation, Inc.
While agreeing to resolve all disputes arising between you and your stockbroker in arbitration, FINRA arbitration is very much a judicial like proceeding. Securities arbitration is, in fact, a quick, fair and cost effective method of resolving disputes. Because securities arbitration panels are generally familiar with most securities related issues securities arbitrations, the process is highly efficient. In addition, costly discovery and deposition practice can be avoided in most securities arbitration cases.
We understand the arbitration process, its practicalities, rules and procedures, We have represented many clients in arbitration proceedings before FINRA and have extensive experience in the litigation of securities related matters.
Contact us today for confidential free evaluation of your claim.