When you lose your investment due to securities fraud or misconduct by a broker or financial advisor, you may have to pursue your compensation claim through the FINRA arbitration process. FINRA arbitration provides a quicker, less expensive means of resolving a securities fraud or broker misconduct claim than traditional court litigation. However, FINRA arbitration cases involve unique differences. A lawyer experienced in handling these claims can explain how to win your arbitration case by implementing the following tips:
Focus on What Matters
A successful arbitration case will require you to present a tight, focused argument to the arbitrator(s). Taking an approach where you level every theoretical claim against your broker or financial advisor may harm your credibility with the arbitrator and undercut the strength of your best claims. Having a clear, consistent theory of the case can help you present a winning argument to the arbitrator.
Select the Right Arbitrators
In a FINRA arbitration, the parties may select their arbitrator from a randomly generated list of qualified arbitrators. FINRA provides a disclosure report for each arbitrator on the list, which includes the arbitrator’s resume and a list of the arbitrator’s decisions. The parties can ask to strike some arbitrators from the list and then rank the remaining names according to each party’s preference.
FINRA arbitrators include individuals connected to the securities industry, called non-public arbitrators, and those who do not have such a connection, called public arbitrators. When a FINRA arbitration involves a panel of three arbitrators, FINRA rules require a public arbitrator to serve as the panel chair. Investors have the right to request an all-public arbitrator panel or a majority-public arbitrator panel.
Selecting an arbitrator or arbitrators for your case requires evaluating candidates’ qualifications, experience, professional history, and prior decisions to determine whether a candidate can handle and decide your case in a professional, expeditious, and fair manner.
Present Strong Evidence
Winning your arbitration case will require your lawyer to present compelling evidence of the alleged fraud or misconduct that caused your financial losses. FINRA arbitration does not generally allow for depositions, so gathering documentary evidence is especially critical. You should expect the brokerage firm being sued to put up stiff resistance. Investors may also hire expert witnesses to testify on their behalf.
Hire the Right Lawyer
Hiring experienced legal counsel can make a difference in the outcome of your FINRA arbitration case. A lawyer can help you with how to win in arbitration by preparing you for what to expect during the process and developing a compelling case to argue for your right to compensation.
If you’ve become the victim of securities fraud or broker misconduct, you may have the right to pursue financial compensation and justice in a FINRA arbitration. Contact Erez Law PLLC today for a free and confidential consultation with an experienced and knowledgeable attorney to discuss how to win an arbitration case.
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