FINRA arbitration lawyers represent investors who have suffered losses due to broker misconduct, financial advisor negligence, or securities fraud and seek to recover through arbitration.
Most investors discover the need for a FINRA arbitration lawyer at the same time they discover a frustrating reality: the brokerage account agreement they signed at account opening often contains a pre-dispute arbitration clause. In many cases, that means the main path to recovery is through FINRA arbitration rather than a courtroom. The process is technically demanding and can be unforgiving to investors who attempt it without experienced counsel.
At Erez Law, our attorneys have handled thousands of FINRA arbitration cases, recovering $300 million for investors nationwide.
If you are an investor, a retiree, a trustee, or a family member who has discovered suspicious account activity or unexplained losses, call 305-728-3320 or toll-free 888-840-1571 for a free, confidential case review with a FINRA arbitration attorney.
Why Choose Erez Law for FINRA Arbitration
FINRA arbitration is not like going to court. The rules are different. The strategy is different. The arbitrators are different. Investors who hire a general litigator to handle a FINRA case often discover the gap between courtroom experience and arbitration experience the hard way.
Thousands of FINRA Cases, 50+ Tried to Award
Our firm has handled thousands of FINRA arbitration cases across every major claim type. We have tried over 50 cases to award and secured the largest sanctions award in FINRA arbitration history against Morgan Stanley. That depth of experience means we know the arbitrators, the defense strategies, and the procedural terrain.
A 99% Success Rate and $300 Million Recovered
Results in FINRA arbitration depend on preparation, not promises. Our 99% success rate and $300 million recovered reflect a case-building methodology grounded in aggressive discovery, detailed damages modeling, and hearing-room readiness at every stage.
Claims Against the Largest Firms in the Industry
We have represented investors in claims against Merrill Lynch, UBS, Morgan Stanley, Wells Fargo Advisors, LPL Financial, and other major national and regional brokerage firms. These institutions retain experienced defense counsel for every arbitration. Our track record reflects a firm that matches that level of preparation case after case.
Focused Entirely on Investor Recovery
Every case our firm handles involves claims against brokerage firms and financial advisors on behalf of investors. Our FINRA arbitration lawyers know the rules and procedures, the products at issue, and the defense strategies firms deploy.
Contingency Fee, Free Consultation
Erez Law works on a contingency fee basis, meaning no attorney fees are owed unless we recover for you. Clients are responsible for case-related costs, and the contingency fee is calculated before deducting those costs. Every case begins with a free, confidential review.
Hablamos Español. International clients may reach us via WhatsApp at 305-336-8068 (text only).
What Types of Claims Do FINRA Arbitration Lawyers Handle?
FINRA arbitration covers a broad range of disputes between investors and brokerage firms or their registered representatives. The following claim types are among the most common our attorneys pursue.
Unsuitable Investment Recommendations
Brokers must recommend investments that align with the client’s risk tolerance, financial objectives, and time horizon. When an advisor places a retiree into speculative products or steers a conservative investor toward volatile alternatives, the recommendation may fail the suitability standard. Suitability claims are among the most frequently filed in FINRA arbitration.
Churning and Excessive Trading
Churning occurs when a broker trades excessively to generate commissions at the investor’s expense. Turnover ratios, cost-to-equity ratios, and commission analysis reveal whether trading activity crossed the line from active management into exploitation.
Unauthorized Trading
Trades executed without the investor’s knowledge or approval constitute unauthorized trading. This includes transactions in non-discretionary accounts or trades that exceed the scope of any limited authorization. These claims focus on whether the broker had actual authority to execute the transactions in question.
Misrepresentation and Failure to Disclose
Brokers who distort material facts, understate risks, overstate projected returns, or fail to disclose conflicts of interest, fees, or liquidity restrictions violate their obligations to the client. These claims often form the foundation of larger fraud allegations in FINRA proceedings.
Failure to Supervise
Brokerage firms have an independent obligation to supervise the activities of their registered representatives. When a firm ignores compliance red flags, fails to review problematic trading patterns, or allows misconduct to continue unchecked, the firm may bear direct liability for the resulting losses. Failure to supervise claims hold the institution accountable alongside the individual broker.
Selling Away and Private Placements
Selling away occurs when a broker facilitates securities transactions outside the firm’s oversight, often involving unapproved or unregistered investments. Private placement fraud claims frequently arise from these off-book transactions, which bypass the firm’s compliance review and leave investors with limited protections.
How Does the FINRA Arbitration Process Work?
The FINRA arbitration process follows a structured sequence governed by FINRA’s Code of Arbitration Procedure for Customer Disputes. Each stage carries its own rules, deadlines, and strategic considerations.
Filing a Statement of Claim
The process begins when the investor files a Statement of Claim with FINRA. This document identifies the respondents, describes the alleged misconduct, and states the damages sought. Selecting the right respondents, whether the individual broker, the firm, or both, is a strategic decision that affects the entire case.
The Brokerage Firm’s Response
The respondent has 45 days to file an Answer addressing each allegation. Some firms raise procedural objections at this stage, such as arguing the claim falls outside FINRA’s six-year eligibility window.
Arbitrator Selection
FINRA uses the Neutral List Selection System to generate lists of potential arbitrators. Both sides rank, strike, and accept candidates. Arbitrator selection is one of the most consequential decisions in the process. The backgrounds, temperaments, and track records of panel members influence both hearing dynamics and outcomes.
Discovery and Document Exchange
Once the panel is seated, both sides exchange documents in accordance with FINRA’s discovery rules. For brokerage firms, required production may include account records, compliance files, supervisory records, internal communications, and trading histories. This phase is where the strongest evidence typically surfaces.
The Evidentiary Hearing
The hearing is where both sides present their cases through witness testimony, documentary evidence, and legal argument. Hearings take place at a FINRA location, typically near the investor’s residence, though virtual formats are also common.
There is no jury. The arbitration panel decides on the dispute and issues an award, usually without detailed written legal findings.
The Award
The panel issues a written award, typically within 30 days after the record closes. The award states whether damages are granted, the amount, and which respondent is liable. FINRA awards are generally binding and can only be challenged in court on very limited grounds.
How FINRA Arbitration Cases Resolve: Settlement, Mediation, and Hearing Outcomes
A significant percentage of FINRA arbitration cases resolve through settlement before reaching an evidentiary hearing. Understanding how that dynamic works helps investors set realistic expectations about the process.
Settlement
Settlement discussions may begin at any stage. Some cases settle shortly after the Statement of Claim is filed. Others settle during or after discovery, once both sides have evaluated the evidence.
The factor that most consistently influences settlement value is the opposing side’s assessment of what would happen at a hearing. Brokerage firms evaluate the strength of the claim, the quality of the evidence, and the preparedness of the opposing legal team.
Mediation
FINRA offers a voluntary mediation program that pairs the parties with a neutral mediator to facilitate negotiations. Mediation does not waive the right to proceed to a hearing if negotiations are unsuccessful. Either side may walk away at any time.
Evidentiary Hearing
When settlement discussions do not produce an acceptable result, the case proceeds to a full hearing before the arbitration panel. Both sides present testimony, documentary evidence, and legal arguments. The panel issues a binding award.
Why Preparation Drives Every Outcome
At Erez Law, every case is prepared as though it will proceed to a full hearing. That preparation is not wasted if the case settles. It is the reason the settlement reflects the claim’s actual value rather than a discounted figure offered to an investor the firm does not take seriously.
Who Do FINRA Arbitration Lawyers Represent?
Erez Law represents a broad range of investors and entities in FINRA arbitration proceedings, including:
- Individual investors who lost money due to broker misconduct, misrepresentation, or unsuitable recommendations
- Retirees and seniors whose retirement savings were placed in high-risk or inappropriate investments
- Trusts, estates, and pension plans affected by fiduciary failures or advisor negligence
- Family partnerships and family offices with complex, multi-account portfolios
- Ultra-high-net-worth individuals targeted for large-scale misconduct
- Trustees, executors, and guardians filing claims on behalf of investors who are unable to act for themselves
- International investors harmed by U.S.-based brokers and brokerage firms
Our attorneys represent clients throughout the United States, Puerto Rico, and internationally, including investors across Latin America. We handle claims in English and Spanish.
How Our FINRA Arbitration Lawyers Build Cases
The defense teams retained by brokerage firms evaluate the opposing law firm before making any settlement assessment. Investors represented by attorneys with a track record in FINRA arbitration receive different treatment than those without experienced counsel.
At Erez Law, our case-building approach follows a discovery-driven methodology at every stage.
- Account and trading analysis: Every case begins with a detailed review of account records, trading patterns, and the regulatory framework governing the advisor’s conduct.
- Discovery and document investigation: Our attorneys examine compliance files, supervisory records, internal communications, and transaction histories to identify the evidence that establishes liability and drives case value.
- Damages modeling: The appropriate measure of loss may include net out-of-pocket losses, market-adjusted losses, excessive fees and commissions, interest, and in limited circumstances, punitive damages and attorney fees. Our team presents a clear, defensible calculation tailored to the facts of each claim.
This process reflects the same preparation our attorneys apply whether a case resolves through settlement or proceeds to a full evidentiary hearing.
What to Bring to a FINRA Arbitration Consultation
A free case review is most productive when the investor brings documentation that allows the attorney to evaluate the claim quickly. Useful materials include the following.
- Brokerage account statements covering the period of suspected misconduct
- Trade confirmations for transactions that were unauthorized, unsuitable, or unexplained
- Account opening paperwork, including the customer agreement and risk tolerance questionnaire
- Written correspondence with the broker or advisor, including emails, letters, and text messages
- Notes from phone calls or meetings where investment recommendations were discussed
- Any prior complaint correspondence submitted to the brokerage firm or a regulator
Gathering these materials before the consultation helps the attorney assess the strength of the claim, identify the appropriate respondents, and provide a candid evaluation of the path forward.
FAQs for FINRA Arbitration Attorneys
How long do I have to file a FINRA arbitration claim?
FINRA has a six-year eligibility rule, and claims may be found ineligible if filed more than six years after the events at issue. State and federal statutes of limitations may impose shorter deadlines depending on the claim. Consulting a FINRA arbitration lawyer promptly helps preserve all available filing options.
Do I need a lawyer for FINRA arbitration?
Investors may represent themselves, but FINRA arbitration involves procedural rules, discovery requirements, arbitrator selection strategy, and damages calculations that may significantly affect the outcome. Brokerage firms retain experienced defense counsel for every claim. FINRA arbitration attorneys are familiar with the process, evening out the imbalance.
What damages may I recover in FINRA arbitration?
Potential categories include net out-of-pocket losses, market-adjusted losses, excessive fees and commissions, interest, and, in some cases, attorney fees and punitive damages (rare). The appropriate measure depends on the facts and the legal theories presented to the panel.
May I request attorney fees or punitive damages?
Arbitration panels have the authority to award attorney fees and punitive damages in certain circumstances. Punitive damages are limited, rare, and reserved for cases involving particularly egregious conduct. Whether to request them is a strategic decision an experienced FINRA arbitration lawyer evaluates based on the specific facts.
What is the difference between filing against the broker and filing against the brokerage firm?
Claims may be filed against the individual registered representative, the brokerage firm, or both. Firms may be liable under failure to supervise theories even when the misconduct was committed by an individual broker. An experienced attorney evaluates which respondents to name based on the facts, the available evidence, and the likelihood of recovery from each party.
There Is No Room For Error – Contact a Trusted FINRA Arbitration Attorney at Erez Law
Jeffrey Erez, FINRA Arbitration Lawyer
FINRA arbitration moves faster than court, offers limited appeal rights, and is decided by arbitrators rather than a jury. Investors who enter the process without experienced counsel face the same defense teams that brokerage firms deploy in every case.
Erez Law has handled thousands of FINRA arbitration cases, tried over 50 to award, and recovered $300 million for investors. Our attorneys prepare every case from day one as though it may proceed to a full evidentiary hearing.
Call 305-728-3320 or toll-free 888-840-1571 for a free, confidential case review. Hablamos Español. International clients may reach us via WhatsApp at 305-336-8068 (text only).