Good cases settle in mediation. Bad cases also settle in mediation. The only difference is for how much do they settle.
Respondent's counsel, or the lawyers for the brokerage firm or stockbroker are generally highly experienced, and as such can reasonably contemplate how the facts and issues in any securities fraud arbitration are likely to play out in front of a securities arbitration panel.
Claimant's counsel or the lawyers for the investor are also generally highly experienced and also know and understand how a the issues and facts in any case is most likely to play out, or be perceived by an arbitration panel.
Litigation involves risk, and no matter what either party may think of the respective merits of any claims or defenses in any securities arbitration, the outcome following a final evidentiary hearing is always uncertain for both parties.
Securities mediation allows the parties to avoid that risk, and allow the parties, with the assistance of the mediator, to evaluate and understand the relative strengths and weaknesses of their respective positions and arrive at an equitable settlement, where it is often said, both parties walk away a little unhappy. The claimant investor took less money than they thought they were entiitled to, and the respondent brokerage firm paid more than they ever imagined. However, securities mediation is often superior to an arbitration award rendered after a final hearing where one party is certain to walk away very, very unhappy, and that unhappy party just might be you.
Throughout the mediation process, the mediator will help the parties negotiate effectively. Efforts to reach a settlement through mediation will continue until: (a) the parties agree to a resolution and execute a written settlement; (b) the parties conclude that further efforts to mediate the dispute would be futile and declare the negotiations at an impasse; or (c) any party or the mediator withdraws from the mediation process for any reason.
Good mediators, however, will stick with the mediation long after it ends and tempers cool.