The Role of Legal Representation in FINRA Arbitration Cases

A risks of investing should not be the financial professional you entrust with your money. Unfortunately, stockbrokers, financial advisors, and investment advisors may defraud clients, resulting in substantial losses. If this happened to you, you may wonder whether you have legal options for seeking recovery.

FINRA, or the Financial Industry Regulatory Authority operates FINRA Dispute Resolution, the exclusive arbitration venue for brokerage firm disputes. A lawyer representing FINRA claims from Erez Law PLLC can help you file a FINRA claim. Our attorneys have experience handling investment fraud cases on behalf of defrauded parties, helping them pursue the recovery of financial losses and holding financial professionals accountable for their actions.

For over 35 years, Erez Law PLLC has represented clients in FINRA arbitration proceedings. We have extensive experience in this field, having tried over 50 cases in arbitration and recovering over $200 million on our clients’ behalf. Contact our nationally recognized law firm to arrange a free consultation to discuss your case and learn more about your legal options.

Here are some of the ways that our lawyers can help in your FINRA hearing:

Examining the Claim

The process of seeking financial recovery following investment advisor or broker dealer misconduct is complex. By enlisting an experienced securities lawyer, you benefit from their advanced knowledge and understanding of securities laws and procedures. The arbitration process begins with filing a claim against the party responsible for your losses. Your attorney can guide you through filing a claim and ensure that your case is properly presented.

As you work with your lawyer, they will listen to your story and evaluate your options. Your securities attorney will review the evidence and determine whether you have a valid claim. Some of the issues that they’ll look for when evaluating your circumstances include:

  • Securities Fraud and Misrepresentation — If your broker didn’t fully inform you of the risks or benefits associated with a particular investment, they may have violated securities disclosure requirements, and you may have a valid fraud claim.
  • Unsuitable Investment Recommendations — Some investment opportunities may not be beneficial for achieving your specific goals. Your investment advisor is obligated to prioritize your needs. If they encourage you to pursue an unsuitable investment, they can be held legally accountable.
  • Unauthorized Trading and Account Churning — Excessive trading conducted against a client’s best interest and without authorization can result in significant financial losses and constitute grounds for a claim against your brokerage firm.
  • Failure to Supervise Brokers and Financial Advisors — Brokerage firms must supervise the brokers and financial advisors they employ and ensure they comply with securities regulations.

If your lawyer believes you have a valid claim after learning about your situation and reviewing the evidence, they’ll begin the process of seeking recovery.

Seeking Remedies for Investors

Your lawyer’s main objective is to achieve the most favorable outcome possible in your case. Typically, this means securing financial compensation for your losses due to your broker’s misconduct. Your attorney may seek compensation for:

  • The loss of value of your investments resulting from broker misconduct
  • Brokerage fees
  • Legal fees arising from taking action against your investment advisor

Your attorney will fight to hold your broker accountable for any financial misconduct they perpetrated. Your broker has a legal duty to keep you informed, follow your instructions and wishes, disclose any conflicts of interest, provide suitable investment recommendations, and comply with all applicable rules and regulations. Your lawyer will identify any failures on your broker’s part during the arbitration process as part of their pursuit of justice on your behalf.

Legal Representation in FINRA Arbitration

FINRA is responsible for regulatory oversight of brokerage firms and their representatives. While the organization establishes and enforces rules for brokers, it doesn’t work individually with investors who are victims of financial misconduct on the part of their investment advisor. Individual investors must pursue claims for damages on their own and Erez Law is available to represent investors with claims against brokerage firms.

A attorney can help your case in many ways, including by doing the following:

  • Advocating for Your Rights — At every stage of the arbitration proceeding, your attorney will fight to protect your legal rights in pursuit of your best interests.
  • Filing Your Claim — Your lawyer will prepare and file your arbitration case on your behalf.
  • Selecting an Arbitration Panel — Your attorney will participate in the selection of either a single arbitrator or a three-person panel to oversee your arbitration hearing.
  • Participating in Discovery and Gathering Evidence — A discovery process is required in arbitration proceedings. Your lawyer will gather and share evidence related to your case.
  • Representing You During Arbitration Hearings — Finally, your attorney will represent you throughout the formal arbitration process.

Due to their familiarity with the process and understanding of the law, an experienced lawyer knows how to best prepare your claim for arbitration and argue your position.

Contact Our Lawyers Specializing in FINRA Arbitration Cases Today

Legal action against an investment broker or another financial advisor who defrauded you can be overwhelming. Luckily, you don’t have to do it alone. A lawyer specializing in FINRA arbitration with Erez Law PLLC can advocate for your rights and interests. Our attorneys understand the regulations for the securities industry and have vast experience successfully representing clients in FINRA arbitration hearings.

Let the legal team at Erez Law PLLC put its decades of experience and extensive resources to work on your behalf. We represent all clients on a contingency fee basis, which means we don’t get paid unless we recover compensation. Contact us today to discuss your situation with our law team during a free consultation.