Securing compensation from the liable party is critical after suffering losses caused by investment fraud or negligence. In most cases, your only option for pursuing damages is going to be through FINRA arbitration. An experienced FINRA arbitration lawyer in North Carolina can help guide you through the process so you can recover the money you need.
At Meyer Wilson, our experienced team understands the struggles that can result from a significant investment loss and will do everything in our power to secure a positive outcome for your case. With over 75 years of experience, our team of North Carolina investment fraud lawyers is ready to help with your case. Contact us to schedule a free case review today.
FINRA Arbitration in Investment Dispute Cases
Financial Industry Regulatory Authority (FINRA) arbitration is the type of alternative dispute resolution most commonly used to resolve conflicts that arise between investors and brokerage firms. FINRA is a not-for-profit organization with United States government authorization to ensure ethical and legal behavior from brokerage firms to protect a fair marketplace.
In most cases, if a dispute arises between an investor and their financial advisor or brokerage firm, FINRA arbitration will be the only option for resolving the conflict. At Meyer Wilson, we will handle every aspect of your FINRA arbitration case. We can help if you suffered financial losses due to:
- Broker negligence
- Failure to supervise
- Breach of fiduciary duty
- Unauthorized trading
- Asset allocation misconduct
This list is not exhaustive. There are a variety of other offenses for which you can seek compensation. Instead of taking your case to court, you will likely need to file a FINRA arbitration claim and attend an arbitration hearing. In most cases, arbitration is a quicker and more cost-effective way to settle a dispute rather than going to trial.
Pursuing compensation through a FINRA arbitration claim can be challenging. Fortunately, an experienced attorney can help you through the process and improve your odds of a positive outcome.
While arbitration is more straightforward than a courtroom trial, there are still several intricacies in the process that can be difficult to navigate on your own. If you sue your financial advisor or brokerage firm, you can expect them to hire a high-priced legal team. Having an experienced FINRA arbitration lawyer in North Carolina by your side can level the playing field.
An Experienced FINRA Arbitration Attorney in North Carolina Can Help Guide You Through the FINRA Arbitration Process
The rules and procedures for the FINRA arbitration process are laid out in FINRA’s Code of Arbitration Procedure. In addition to dictating how arbitration should be conducted, this code also stipulates which cases should be handled through arbitration and the circumstances under which another method for pursuing compensation should be used.
Filing a FINRA Arbitration Claim
Filing your statement of claim initiates the FINRA arbitration process. Your statement of claim is the first impression the arbitrator handling your claim will have of your case. As such, the statement of claim is the single most important document in any FINRA arbitration case.
This document should provide a clear picture of the case you are bringing to the arbitrator, along with laying out the damages you incurred and how your financial advisor or brokerage firm is liable.
An experienced lawyer will create your statement of claim for you, ensuring that all the necessary information is included. All FINRA claims need to be paid online, along with a filing fee. After submitting your statement of claim, the party you are filing against will have 45 days to submit a written response.
FINRA Arbitration Hearings
The procedure for your FINRA arbitration case will depend on the amount of money you are seeking as compensation. In claims of less than $50,000, a single arbitrator will preside over the case and make their ruling based solely on your statement of claim and the written response from the opposing party without holding a hearing.
For claims ranging from $50,000 to $100,000, there will likely only be a single arbitrator. However, a hearing will take place. During this hearing, both parties will present evidence, and witnesses will give testimony. For claims exceeding $100,000, a three-arbitrator panel will preside over a hearing, and the ruling will be made based on a majority vote.
After you submit your statement of claim, it will likely take between 12 and 16 months to get the final decision in your case. While waiting for FINRA to schedule your arbitration hearing, your lawyer will build your case. The length of the actual hearing will likely be three to five days. However, complex cases can take weeks to resolve.
FINRA Arbitration Rulings
All FINRA arbitration rulings are legally binding, and, in most cases, the ruling of the arbitrator or arbitration panel can not be appealed. Once a ruling has been made, FINRA will issue a document containing the following information about the final award:
- The names of the involved parties
- Descriptions of the claims and the defenses used
- Which party prevailed in each claim
- The amount awarded for damages or an order of dismissal of all claims
If you win your claim, your brokerage firm or financial advisor will have 30 days to pay you the money you are owed. Should they fail to pay on time, your lawyer will petition to have their brokerage license suspended. Next, your lawyer will pursue the money they owe you through garnishment proceedings or an attachment levy.
FINRA Arbitration Is Used to Resolve Almost All Investment and Securities Disputes
When you invest your money with a brokerage firm or financial advisor, you will sign an investment agreement. In this contract, it will likely state that any disputes that may arise will need to be resolved through FINRA arbitration.
FINRA arbitration is the preferred method of conflict resolution for brokerage firms for a variety of reasons. However, the most appealing aspect of arbitration is the discretion it provides. FINRA hearings are private, with the final award typically being the only document released from the proceedings.
Get in Touch With a FINRA Arbitration Attorney Serving North Carolina Today
After losing a significant portion of your investment due to securities and investment fraud, hiring an experienced FINRA arbitration attorney in North Carolina is the best way to improve your chances of recovering the money you need. At Meyer Wilson, our award-winning team has secured over $350 million for our clients over the years.
Contact us by giving us a call or completing our online contact form today to set up a free, no-obligation case consultation.