Have you suffered losses from an investment that was not suitable or whose risks you did not understand or know about? If so, your financial broker’s negligence or misconduct could be to blame, in which case, you may pursue compensation through a FINRA case. Contact Erez Law PLLC for an initial case review to learn more about the FINRA arbitration process and whether you have grounds for such a claim.
Why You Need an Investment Loss Attorney
The FINRA arbitration process involves complex rules and procedures. Your claim against a financial institution, broker, or advisor may raise complex factual and legal issues. A successful result in FINRA litigation may require you to seek experienced legal counsel from lawyers who work on FINRA arbitration cases. The legal team at Erez Law PLLC has the experience and knowledge to tackle the most demanding Pennsylvania FINRA cases. Our nationally recognized firm has recovered over $320 million in client compensation. We have over 35 years of experience in investment loss cases, having brought about successful resolutions in thousands of cases. As one client wrote of our dedicated legal representation:
“I appreciate the work Jeff Erez has done for me and my family and the attention he gave to our case. I had been taken advantage of by an unscrupulous financial advisor. I contacted Erez Law and retained them on my case. Jeff Erez and his law firm as a whole were very involved in the handling of our case from beginning to end.
During the time from filing with FINRA to resolution, Jeff provided valuable counsel to us. Erez is a busy attorney, but he was always available to answer questions we put to him. When we talked with Jeff, he communicated clearly, and he provided excellent advice and was effective in following through on his commitments to us. Erez is a focused individual, but he takes time to address the personal and emotional questions I had.
I hope I don’t have occasion to retain an investment fraud attorney again. But if I do, I will go back to Jeff Erez. He and his team can be counted on to fight on my behalf.”
When you choose our firm to assist you with a FINRA arbitration, you can expect our team to advocate for your interests by:
- Investigating your claims to obtain evidence of your broker’s negligence or misconduct under the Securities Exchange Act, the
- Pennsylvania Securities Act of 1972, and other securities regulations
- Documenting your investments and working with financial experts as necessary to calculate your losses
- Preparing and filing a comprehensive and persuasive statement of claim regarding your allegations
- Ensuring you know what to expect during the FINRA arbitration process
- Advocating persuasively for you in arbitration hearings
Contact us today to find out more about your legal rights. We know the FINRA rules and have extensive experience representing clients like you who’ve suffered significant losses due to the misconduct of brokers and the brokerage firms that hire them. We can discuss your specific FINRA claim during a free consultation.
Types of Cases Our Investment Loss Attorneys Handle in Pennsylvania
At Erez Law PLLC, our firm handles FINRA arbitration cases arising from all types of brokerage firm or broker-dealer misconduct or errors, including:
- Misrepresentations
- Negligence
- Securities fraud
- Unauthorized trading
- Failure to diversify investments
- Recommending unsuitable investments
- Breaches of state and federal securities laws
- Breach of fiduciary duty
- Churning (making trades for the sole purpose of generating commissions for the broker)
What Is FINRA Arbitration?
In the financial industry, most claims of brokerage firm or broker-dealer misconduct or negligence are resolved through arbitration overseen by the Financial Industry Regulatory Authority (FINRA), a private, non-profit organization comprising members from the financial industry, authorized by the federal government to conduct self-regulation of the industry. When investors have claims against brokerage firms or broker-dealers with membership in FINRA, they must pursue compensation on those claims through FINRA arbitration rather than filing a lawsuit in court. FINRA arbitration provides a much more efficient means of resolving disputes between investors and brokerage firms than a lawsuit and courtroom trial.
Most client agreements between investors and brokerage firms require both parties to submit legal disputes to FINRA arbitration. Financial institutions and brokers favor FINRA arbitration because, unlike a lawsuit where the entire court record becomes public, FINRA arbitration proceedings remain confidential, with only the final award becoming publicly available. Furthermore, a FINRA arbitration award represents a binding ruling on the parties, which either party can enforce in court. A party aggrieved by an arbitration award has limited appellate rights, as courts can only overturn an arbitration award in limited circumstances, such as fraud, arbitrariness, denial of due process, or an arbitrator exceeding the scope of their authority.
How FINRA Arbitration Works for Pennsylvania Investors
A FINRA arbitration case begins when an investor or their legal counsel files a statement of claim with FINRA. The statement of claim outlines the investor’s allegations against their brokerage firm or broker-dealer, identifies the legal claims they wish to assert against them, and documents the losses the investor seeks to recover in arbitration. A statement of claim should inform the arbitrator(s) of the nature of your claims and allow the brokerage firm or broker-dealer to formulate a defense and file a response to the statement.
The procedure used for FINRA arbitration will depend on the value of an investor’s claim. For claims seeking less than $50,000, the parties choose a single arbitrator from FINRA’s panel of arbitrators, who decides the case based solely on the investor’s statement of claim and the broker’s written response, without holding a hearing with the parties. For claims seeking between $50,000 and $100,000, the parties choose a single arbitrator who will hold a hearing that functions like a trial, allowing the parties to present arguments, evidence, and witness testimony to the arbitrator. For claims seeking more than $100,000, the parties choose a panel of three arbitrators, who will hold a hearing and decide the claim based on a majority vote. Depending on the value and complexity of a claim, FINRA arbitration can take several months to over a year to resolve. Arbitration hearings typically last several days, although more complex cases may require hearings that span several weeks.
When an arbitrator or arbitration panel rules in favor of the investor, the brokerage firm must pay the award within 30 days or face consequences, such as garnishment, attachment levies, or suspension of brokerage licenses.
What You Can Do If You’ve Suffered Investment Losses
After sustaining investment losses due to broker error or misconduct, steps you can take to protect your interests and options include:
- Gather copies of your client agreement, brokerage account statements, and correspondence with the broker.
- Secure your money by putting a freeze on your account, if warranted.
- Review your client agreement to determine whether you must submit your claims to FINRA arbitration.
- Contact an investment loss attorney to discuss your legal options and get help from a knowledgeable advocate.
Contact Erez Law PLLC for a Free Case Review
You could be entitled to compensation for the money you’ve lost because of a broker or manager’s misconduct. Let us help you demand it. Contact Erez Law PLLC today for a free, confidential consultation with an investment loss attorney to discuss your legal options for pursuing financial recovery.