For victims of investment fraud or negligence, recovering compensation from the liable party can be essential for rebuilding their financial footing. To secure damages, you will probably have to pursue a claim through FINRA arbitration. An experienced FINRA arbitration attorney serving Pennsylvania can help you through every step of the process.
At Meyer Wilson, we know how difficult it can be to get back on firm ground after losing your investment. Our team of experienced investment fraud lawyers serving Pennsylvania will work around the clock to ensure you recover the money you need. Reach out to us today by phone or through this website to schedule a free consultation with a member of our team.
What Is FINRA Arbitration?
FINRA arbitration is the primary form of alternative dispute resolution used to handle conflicts in the financial industry. The Financial Industry Regulatory Authority (FINRA) is a not-for-profit organization with authorization from the U.S. government to ensure brokerage firms conduct their business legally and ethically to help ensure a fair marketplace.
When disputes arise between brokerage firms and investors, they will likely need to be resolved through FINRA arbitration. At Meyer Wilson, we can handle your arbitration case after you have suffered losses due to various types of investment misconduct, including:
- Broker negligence
- Failure to supervise
- Breach of fiduciary duty
- Unauthorized trading
- Asset allocation misconduct
Rather than going to court to resolve these disputes, you will likely have to pursue damages through FINRA arbitration. The benefits of arbitration for fraud victims include that arbitration is generally quicker and more efficient than a courtroom trial.
Attempting to recover compensation through FINRA arbitration without a lawyer by your side is unlikely to result in a favorable outcome. Several complexities must be observed in arbitration, and you can expect your brokerage firm or financial advisor to hire an attorney if you sue them. Hiring a FINRA arbitration lawyer serving Pennsylvania can make all the difference.
An Experienced FINRA Arbitration Attorney Serving Pennsylvania Can Help You Through Arbitration
The FINRA Code of Arbitration Procedure dictates the rules and procedures for the arbitration process. Furthermore, it determines which cases are eligible for arbitration and under what circumstances you will have to seek damages through another method.
Filing Your FINRA Arbitration Claim
Your FINRA arbitration case will begin when you file your statement of claim. A statement of claim is the first impression an arbitrator gets of a case. That makes this the most important document in any arbitration case. Your statement of claim should provide the arbitrator with a clear picture of your case, including your damages and how the brokerage firm is liable.
An experienced attorney will create this document for you, ensuring that it contains all the information the arbitrator or arbitration panel will need. All FINRA claims must be filed online, and a filing fee must be paid. Once you have submitted your statement of claim, the brokerage firm must submit a written response within 45 days.
FINRA Arbitration Hearings
The amount of money you are seeking in your claim will affect the procedure for your FINRA arbitration case. For claims under $50,000, a single arbitrator will rule on the case, making their decision based solely on the statement of claim and written response without a hearing.
For claims of $50,000 to $100,000, a single arbitrator will likely be appointed. However, for these cases, there will be a hearing where both parties will present evidence, and witness testimony will be given. For claims of greater than $100,000, a hearing will be held with a three-arbitrator panel, and a majority vote will make the ruling.
In most cases, it will take from 12 to 16 months to get a decision after you file your statement of claim. As you wait for your FINRA hearing to be scheduled, your lawyer will work on building your case. The actual hearing is likely to last from three to five days. However, with complex cases, it is not uncommon for a hearing to take weeks.
FINRA Arbitration Rulings
Rulings in FINRA arbitration cases are legally binding and usually are not able to be appealed. Once the arbitrator or arbitration panel has ruled in your case, FINRA will issue a document of the final award, including the following information:
- The names of the parties involved
- Descriptions of all claims and the defenses presented
- Who prevailed in each claim
- The amount awarded or an order of dismissal of all claims
If you win your claim, the brokerage firm must pay you your money within 30 days. Failure to pay on time will lead your attorney to petition to have their brokerage license suspended. Your attorney will then take the necessary steps to secure the money you are owed through garnishment proceedings or an attachment levy.
FINRA Arbitration Is Used in Almost All Investment and Securities Fraud Claims
You will sign an investment agreement when you invest your money with a brokerage firm. One of the clauses in this contract will likely state that any disputes between you and the firm will need to be handled through FINRA arbitration.
Brokerage firms prefer using FINRA arbitration rather than going to trial for several reasons. However, the main appeal is usually the discretion that arbitration provides. FINRA hearings are private, and the only document typically released tends to be the final award.
Contact a FINRA Arbitration Attorney Today
After incurring significant financial losses caused by securities and investment fraud, securing the services of an experienced Pennsylvania FINRA arbitration lawyer will greatly improve your odds of recovering fair compensation. At Meyer Wilson, our award-winning team of investment investment fraud attorneys has successfully recovered over $350 million for our clients.
Contact us today by giving us a call or filling out our online contact form to set up a free, no-obligation case evaluation.