Following significant financial losses caused by investment fraud or negligence, recovering compensation from the liable party can be critical. In most cases, you will have to use FINRA arbitration to pursue damages. An experienced FINRA arbitration attorney serving New York can help you file a claim and secure the compensation you deserve.
At Meyer Wilson, we understand the challenges that investment fraud victims face. Our team of experienced investment fraud lawyers serving New York will work around the clock to ensure you get the money you need. Complete our online contact form or give us a call today to set up a free consultation with an attorney from our firm.
What Is FINRA Arbitration?
FINRA arbitration is a 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, government-authorized organization that works to ensure brokerage firms are held responsible for any misconduct and ensure a fair marketplace for investors.
Disputes between investment firms and investors are almost always resolved through FINRA arbitration. At Meyer Wilson, we can help you through every step of the process when pursuing damages resulting from a wide range of investment misconduct, including:
- Failure to supervise
- Unauthorized trading
- Breach of fiduciary duty
- Asset allocation misconduct
- Broker negligence
FINRA arbitration is used in place of a courtroom trial. Some of the biggest benefits of arbitration for an investor are that it is quicker and more efficient, as there are fewer expenses compared to court cases..
You will likely struggle to recover the compensation you need if you attempt to navigate the FINRA arbitration process on your own. FINRA arbitration can be complex, and you can be sure that your brokerage firm or financial advisor will retain legal counsel if you sue them. Hiring an experienced FINRA arbitration lawyer in New York can help tip the scales in your favor.
An Experienced FINRA Arbitration Lawyer Serving New York Can Help You Navigate the Arbitration Process
There are a variety of rules and procedures that must be followed in FINRA arbitration. These rules are set forth by the FINRA Code of Arbitration Procedure. In addition to establishing procedural guidelines, this code also outlines the types of cases that can be settled through arbitration and which conflicts will need to be resolved in some other manner.
Filing a FINRA Arbitration Claim
The FINRA arbitration process will start as soon as you submit your statement of claim to FINRA. This statement is the most important document in any FINRA arbitration case. As such, it is critical that you hire an experienced attorney to help you write the best possible version. In this document, you will detail your case and argue why you deserve compensation.
The first impression the arbitrators will have of your case will be the statement of claim you submit. A FINRA arbitration attorney serving New York can help you ensure your statement of claim is clear and contains all the information needed to make your case. You will include all of the damages you incurred as well as how the brokerage firm caused your losses.
When you file your statement of claim with FINRA, a filing fee is paid. All FINRA claims will need to be filed electronically. Once you have submitted your statement of claim, the brokerage firm will need to file their written response within 45 days.
FINRA Arbitration Hearings
The process of your FINRA arbitration will vary depending on the amount of money being sought. For claims of less than $50,000, a single arbitrator will preside over your case. They will not hold a hearing and will instead make their decision based solely on your written statement of claim and response.
Claims of $50,000 to $100,000 typically use a single arbitrator as well. However, in these cases, there will be a hearing where witnesses will give testimony, and both sides will present evidence. With claims of more than $100,000, a three-arbitrator panel is typical, and the final ruling in your case is made by a majority vote.
From the time you file your statement of claim until you receive your final result, you can expect about 12 to 16 months to pass. While waiting for FINRA to schedule your hearing, your attorney will ensure you have a strong case on your behalf. The actual hearing will likely last three to five days, although it can take weeks in some cases.
FINRA Arbitration Rulings
The Ruling in Your FINRA arbitration case is legally binding and is not typically open for appeal. After the arbitrator or arbitration panel has reached a decision, FINRA will issue a formal award document that will include the following information:
- The names of the involved parties
- A description of each of the 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 the arbitrators side with you, the brokerage firm will need to pay the money they owe you within 30 days. If they don’t pay on time, your attorney will petition to have their brokerage license suspended. Your lawyer will then take steps to recover your money through garnishment proceedings or an attachment levy.
Investment and Securities Fraud Claims Are Almost Always Resolved Through FINRA Arbitration
When you invest money with a brokerage firm, you will sign an investment contract. Included in this contract, there will likely be a clause stating that any disputes that may arise between you and your brokerage firm will be dealt with through FINRA arbitration.
Brokerage firms prefer this method of dispute resolution for a variety of reasons. However, the primary benefit is the privacy that comes with these proceedings. FINRA arbitration hearings are private, and in most cases, the only document that is released to the public is the final award.
Get Help From an Experienced FINRA Arbitration Lawyer Serving New York Today
After suffering financial losses caused by investment fraud, hiring an experienced New York FINRA arbitration attorney can significantly improve your odds of recovering fair compensation. At Meyer Wilson, we have managed to secure more than $350 million for our clients over the last two and a half decades.
Contact us by phone or through our website to schedule a free initial case evaluation today.