After suffering financial losses as a result of investment negligence or fraud, securing compensation from the liable party can be critical for your financial future. To recover compensation, you will likely need to go through FINRA arbitration. An experienced California FINRA arbitration attorney will help you through the process.
At Meyer Wilson, we understand the challenges you face. Our team of experienced California investment fraud lawyers will work tirelessly to help get you the money you need. Give us a call or complete our online contact form to schedule a free case review with a member of our legal team.
What Is FINRA Arbitration?
FINRA arbitration is a form of alternative dispute resolution commonly used throughout the financial industry. The Financial Industry Regulatory Authority (FINRA) is a not-for-profit organization authorized by the United States government to help ensure the fairness of the marketplace by ensuring brokerage firms behave in a legal and ethical manner.
When a dispute arises between an investor and a brokerage firm, it will most likely be handled through FINRA arbitration. At Meyer Wilson, we will help guide you through every step of the arbitration process when pursuing damages after suffering losses caused by investment misconduct, including:
- Broker negligence
- Breach of fiduciary duty
- Asset allocation misconduct
- Failure to supervise
- Unauthorized trading
Instead of going to court in these cases, you will likely go through FINRA arbitration. For investors seeking compensation, some of the biggest advantages of arbitration are that it is quicker and more efficient than a courtroom trial.
Pursuing damages through FINRA arbitration without the help of an experienced attorney is unlikely to yield favorable results. There are a variety of complexities in the arbitration process, and your brokerage firm or financial advisor will certainly retain legal counsel if you sue them.
Having an experienced California FINRA arbitration attorney by your side can make all the difference.
An Experienced FINRA Arbitration Lawyer Serving California Will Guide You Through Arbitration
The FINRA Code of Arbitration Procedure lays out several rules and procedures that must be observed during FINRA arbitration. Additionally, it identifies which cases are eligible for arbitration and which disputes will need to be resolved through other methods.
Filing Your FINRA Arbitration Claim
FINRA arbitration begins as soon as you file your statement of claim. Your statement of claim is the first impression the arbitrators will have of your case, so its importance can not be overstated. Your statement of claim should give a thorough overview of your situation and show the damages you suffered and how the brokerage firm was responsible.
An experienced lawyer will be able to create this document for you, ensuring that it includes all of the necessary information. All FINRA claims must be filed online. When submitting your statement of claim, a filing fee is paid. After you have filed, the brokerage firm will need to submit their written response within 45 days.
FINRA Arbitration Hearings
The procedure used in your FINRA arbitration case will depend on the amount of money you are seeking. With claims of less than $50,000, a single arbitrator will decide the case based solely on the written statement of claim and response from the brokerage firm. There will be no hearing for these claims.
A single arbitrator will also likely be used for claims of $50,000 to $100,000. However, in these cases, a hearing will be held where witnesses will give testimony, and both parties will present evidence. In claims of more than $100,000, a three-arbitrator panel will hold a hearing, and the final decision will be based on a majority vote.
For most cases, it will take between 12 and 16 months to receive a decision after filing your statement of claim. While you wait for FINRA to schedule your hearing, your attorney will build your case. The actual arbitration hearing will last three to five days in most cases. However, for complex cases, the final hearing can take much longer.
FINRA Arbitration Rulings
Rulings in FINRA arbitration cases are legally binding and are generally not open for appeal. After the arbitrator or arbitration panel has ruled in your case, FINRA will release a document for the final award, which will include:
- The names of the involved parties
- A description of all claims and the defenses presented
- Who prevailed in each claim
- The amount awarded to the claimant or an order of dismissal of all claims
If you win your claim, the brokerage firm will need to pay you the money they owe within 30 days. Should they fail to pay you on time, your attorney will petition the court to suspend their brokerage license. Your lawyer will then take steps to get you your money through garnishment proceedings or an attachment levy.
Securities and Investment Fraud Claims Almost Always Go Through FINRA Arbitration
When you invest your money with a brokerage firm, you will sign an investment agreement. Included in this agreement will likely be a clause stating that any disputes that may occur between you and your brokerage firm will need to be resolved through FINRA arbitration.
Brokerage firms prefer arbitration over going to trial for a variety of reasons. However, the primary appeal is most often the discretion that FINRA arbitration provides. FINRA hearings are private, and the only document released in most cases is the final award.
Reach Out to an Experienced FINRA Arbitration Lawyer Today
After suffering financial losses caused by investment or securities fraud, hiring an experienced California FINRA arbitration lawyer will significantly improve your odds of getting the money you need. At Meyer Wilson, our award-winning team has won $350+ million for our clients over the last 25 years.
Contact us today by phone or through our website to set up a free, no-obligation consultation.