Call Now For a Free Consultation:
(614) 532-4576
Nationwide Representation

Finra Statistics Show 2010 Was Favorable to Investors With Arbitration Claims

The number of multi-million dollar arbitration awards issued by FINRA in 2010 led many industry professionals to assert that the arbitration process was slowly becoming fairer to investors. The December 2010 statistics recently released by FINRA seem to indicate there may be some truth to those claims.

Last year, investors were awarded damages in 47 percent of the cases heard by a FINRA arbitration panel. That’s a higher percentage than any other year in the past six years. (The closest was 2009 with 45 percent. 2007 was the worst year in the past six years for investor awards, with only 37 percent of arbitration cases concluding with a customer award for damages.)

As in the past five years, 2010 arbitration cases primarily involved mutual funds (863 cases) and common stock (862 cases). Variable annuities (270 cases) were the next most common type of investment involved in arbitration cases last year.

The top five types of arbitration claims filed in 2010 were cases related to 1) breach of fiduciary duty, 2) negligence, 3) misrepresentation, 4) failure to supervise, and 5) breach of contract. Breach of fiduciary duty has been the most common type of arbitration claim filed every year since 2006. Cases involving omission of facts and claims of unsuitability were also prevalent last year.

Overall, there was a 20 percent reduction in arbitration cases filed in 2010 compared to 2009 but a 37 percent increase in cases closed.

The information contained in The Firm’s posts on its blog, fraud alerts, investigations or elsewhere on the site is based upon information obtained from other sources including, but not limited to, news outlets and federal, state, and regulatory agency filings. All suspects and subjects of postings herein are presumed innocent until proven guilty in a court of law or administrative action and any and all crimes are alleged until a court or regulatory agency finds otherwise .

Share This Story
If you found the information provided by this article useful, consider sharing to your social media channels to help others in their search for reliable resources.
Consult with Our Legal Team
There is never a cost associated with a consultation
Atlanta Office

945 East Paces Ferry Road, Suite 2275
Atlanta, GA 30326
Columbus Office

305 W. Nationwide Blvd
Columbus, OH 43215
Meyer Wilson
New Orleans Office

900 Camp Street 
Suite 337
New Orleans, LA 70130
Los Angeles Office

2029 Century Park East,
Suite 400N
Los Angeles, CA 90067
Cleveland Office

4781 Richmond Rd.
Suite 400
Warrensville Heights, OH 44128
Bloomfield Hills Office

41000 Woodward Ave.,
Suite 350
Bloomfield Hills, MI 48304
Quick Links
The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter. No recipients of content from this site, clients or otherwise, should act or refrain from acting on the basis of any content included in the site without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from an attorney licensed in the recipient's state. Read More
The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter.
Read More
chevron-down linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram