Stifel, Nicolaus & Co., Inc. was ordered by a Financial Industry Regulatory Authority arbitration panel to pay a family $132.5 million for misrepresenting the risk of complex structured notes.
If you or someone you know has suffered significant investment losses working with Stifel Nicolaus or another brokerage firm, don’t hesitate to reach out to Meyer Wilson today. Our attorneys are experienced in securities fraud cases and will help to guide you through the process with a free consultation to determine whether your losses are the result of actionable misconduct.
Allegations Against Stifel, Nicolaus & Co., Inc.
In this matter, the clients claimed that their accounts were mismanaged and that significant harm resulted from the behavior of Stifel, Nicolaus, & Co. The allegations included:
- Breach of fiduciary duty
- Negligence and negligent supervision
- Fraud and breach of contract
- Violations of the Florida Securities and Investor Protection Act
The Role of Structured Notes
Structured notes, which were a major point of concern in this dispute, are often marketed to investors for diversification or growth potential. According to the arbitration award, the financial advisor allegedly overconcentrated these products in the clients’ portfolios, prioritizing the firm’s financial interests over the clients’ well-being.
Punitive and Compensatory Damages
The arbitration panel awarded substantial compensatory and punitive damages. One client received more than $26 million in compensatory damages and over $78 million in punitive damages. Several other clients each received six-figure compensatory awards as well as further punitive damages in the hundreds of thousands of dollars. Between the compensatory and punitive damages, the total damages awarded exceeded $132 million. This level of damages demonstrates how seriously arbitration panels can treat misconduct when it leads to major financial losses.
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$350 Million for Our Clients Nationwide.
About Stifel, Nicolaus & Co., Inc.
Stifel, Nicolaus & Co., Inc. (CRD#: 793) has a notable history in the securities industry. The firm’s background offers insight into its size and operational practices. Some things to consider about the firm include:
- It is one of the major brokerage firms operating across the United States.
- The firm has a record of regulatory actions, disputes, or issues raised against it by various parties.
- Stifel, Nicolaus & Co., Inc. has publicly stated guidelines and standards for supervising its financial advisors—but lapses in oversight can lead to investors suffering serious losses.
Supervisory Lapses
When brokerage firms fail to properly supervise their financial advisors, investors can bear the brunt of the losses. This case shows the importance of consistent checks and balances within a firm’s compliance system, where ignoring red flags can amplify the harm inflicted on investors.
Meyer Wilson: Standing Up for Victims of Stifel, Nicolaus & Co., Inc. Misconduct
No one deserves to be on the losing end of improper investment decisions or negligent supervision by a financial advisor. If you suspect wrongdoing by Stifel, Nicolaus & Co., Inc. or another firm, Meyer Wilson is here to offer guidance and support. We have helped countless investors hold brokerage firms accountable.
Contact our team at Meyer Wilson today. With over 20 years of experience and $350 million in recovered losses for our clients, we are well-versed in handling cases such as these. From arbitration to litigation, we will fight for you each step of the way.
Our lawyers are nationwide leaders in investment fraud cases.
FAQs
Why was Stifel, Nicolaus & Co., Inc. involved in this arbitration?
Stifel, Nicolaus & Co., Inc. was named as the respondent because the clients believed the firm’s financial advisor and supervisory practices caused their losses.
How do arbitration awards work in cases like this?
An independent arbitration panel reviews the claims and evidence. If it finds the brokerage firm liable, it can order the firm to pay compensatory and punitive damages to the affected investors. For an in-depth look, check out our blog on the arbitration process.
Can I still pursue a claim if my losses seem small compared to the amounts mentioned here?
Absolutely. Investors have the right to pursue claims of any size if they believe a financial advisor’s actions or a firm’s supervision caused them harm.
How do I know if I have a valid claim against my financial advisor?
Consider factors such as overconcentration of risky products, unauthorized trades, unsuitable investments, or a lack of proper disclosure. If any of these occurred, it may warrant further investigation.
What types of damages might be awarded in arbitration?
The panel may award compensatory damages to cover losses and punitive damages if the misconduct is especially egregious. The specific amount can vary widely based on the facts of each case.
Recovering Losses Caused by Investment Misconduct.
