In February 2017, a Stifel, Nicolaus & Company, Inc. customer won an award in a FINRA arbitration for compensatory damages in the amount of $79,709 plus $26,304 in attorneys’ fees and $11,342 in costs from losses sustained sustained in a joint investment account.
According to the award, the legal claims brought against Stifel, Nicolaus & Company, Inc. included: breach of fiduciary duty, negligence, suitability, unauthorized trading, failure to supervise, violations of FINRA, NASD, and NYSE Rules, violations of the Texas Securities Act, constructive fraud, breach of contract, and respondeat superior.
The claimants alleged that the Stifel, Nicolaus & Co. representative “engaged in a pattern of unauthorized, highly speculative, and unsuitable trading in their joint investment account, without their knowledge.” The claimants alleged that all of the losses incurred were a result of Stifel’s failure to supervise their registered representative. The FINRA arbitration hearing was conducted in Dallas, Texas.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Stifel, Nicolaus & Company, Inc. may be liable for investment or other losses suffered by its customers.
Erez Law represents investors in the United States for claims against Stifel, Nicolaus & Company, Inc. and other brokerage firms for losses due to unauthorized trading, suitability and a large list of other allegations. If you were a client of Stifel, Nicolaus & Company, Inc. or another firm and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.