After losing money due to investment fraud or negligence, it can be critical to file a lawsuit to recover compensation. When pursuing damages, you will likely have to do so through FINRA arbitration. An experienced Louisiana FINRA arbitration attorney can help through every step of the arbitration process.
At Meyer Wilson, we know the difficulties that significant financial losses can pose. Our team of experienced Louisiana investment fraud lawyers will do everything within our power to ensure a favorable outcome for your case. Fill out our online contact form or give us a call to schedule your free, initial case review with a lawyer from our firm today.
What Is FINRA Arbitration?
FINRA arbitration is the most common form of alternative dispute resolution used in the financial industry to resolve conflicts. The Financial Industry Regulatory Authority (FINRA) is a not-for-profit organization with authorization from the U.S. government to help ensure that brokerage firms conduct their business ethically to protect investors.
Disputes that arise between investors and brokerage firms are almost always resolved using FINRA arbitration. At Meyer Wilson, we are ready to help you through every step of the arbitration process if you have suffered losses due to many forms of investment misconduct, including:
- Breach of fiduciary duty
- Failure to supervise
- Broker negligence
- Unauthorized trading
- Asset allocation misconduct
FINRA arbitration is an alternative to taking a case to trial. For an investor seeking compensation, one of the main benefits of arbitration is that it tends to be far quicker than a courtroom trial. Additionally, arbitration is usually much more cost-effective as there aren’t as many expenses involved.
Attempting to pursue compensation through FINRA arbitration on your own is unlikely to prove successful. There are many complex details in the arbitration process, and your brokerage firm or financial advisor will certainly hire a lawyer if you sue them. Securing the services of an experienced FINRA arbitration lawyer in Louisiana is the best way to tip the scales in your favor.
Most Securities and Investment Fraud Claims Are Handled Through FINRA Arbitration
When you entrust your money to a brokerage firm, you will sign an investment agreement contract. There will likely be a clause included in this contract stating that all disputes that may arise between you and the brokerage firm will need to be resolved through FINRA arbitration.
Brokerage firms prefer arbitration to a trial for several reasons. However, the main appeal tends to be the privacy that FINRA arbitration affords them. FINRA hearings are private, and the only document released from these proceedings is typically the final award.
An Experienced FINRA Arbitration Attorney Serving Louisiana Will Help You Through the Arbitration Process
There are several rules and procedures that must be followed during FINRA arbitration. The FINRA Code of Arbitration Procedure sets the guidelines for how these cases are handled. In addition, it identifies the cases that can be dealt with through arbitration and what disputes will need to be handled in another way.
Filing a FINRA Arbitration Claim
The FINRA arbitration process starts the moment you submit your statement of claim. The statement of claim can make or break a FINRA case. The first impression the arbitrators will receive of your case will be your statement of claim, so it is critical that it gives them a thorough understanding of your case.
You’ll want to hire an experienced attorney to draft this document to ensure it includes all the necessary information about your case, why you deserve compensation, and how the brokerage firm was responsible.
When submitting your statement of claim to FINRA, a filing fee is paid. FINRA is completely paperless, so all claims are filed electronically. After submitting your statement of claim, the brokerage firm will have 45 days to file a written response.
FINRA Arbitration Hearings
The FINRA arbitration process can vary based on the amount of losses you claim. For claims of under $50,000, decisions made by a single arbitrator are standard. There won’t be a hearing in these cases, and the arbitrator will make their ruling based solely on the statement of claim and written response they receive.
A single arbitrator is also common for claims ranging from $50,000 to $100,000. However, in these cases, there will be a hearing where the arbitrator will hear testimony from witnesses and review evidence presented by both parties. For claims greater than $100,000, a three-arbitrator panel will be convened, and the final decision will be made based on a majority vote.
It typically takes 12 to 16 months from the moment you file your statement of claim to receive a decision in your case. As you wait for FINRA to schedule your hearing, your lawyer will build your case to ensure they are prepared to present it to the arbitrator or arbitration panel. The hearing itself will likely take three to five days, although it can take weeks for complex cases.
FINRA Arbitration Rulings
FINRA arbitration rulings are legally binding and are only open to appeal under limited circumstances. Once the arbitrator or arbitration panel has made their ruling, FINRA will release a formal award document, including the following information:
- The names of all involved parties
- A description of each claim and the defenses presented
- Who prevailed in each claim
- The amount awarded or an order of dismissal of all claims
If you win your case, the brokerage firm must pay you compensation within 30 days. If they fail to pay on time, your lawyer will petition the court to suspend their brokerage license. Your attorney will then move to recover the money you are owed through garnishment proceedings or an attachment levy.
Get Help From an Experienced FINRA Arbitration Attorney Today
Following the loss of your investment due to fraud, securing legal representation from an experienced Louisiana FINRA arbitration lawyer can be critical. At Meyer Wilson, our award-winning team has recovered over $350 million for our clients over the last 25+ years.
Contact us through our website or by phone to schedule a free, no-obligation case consultation today.