Can I file a stockbroker misconduct claim in court or do I have to go through
More than likely, your stockbroker misconduct claim will be handled in
mandatory arbitration before the Financial Industry Regulatory Authority
(FINRA). The majority of broker disputes are heard in front of a panel
of arbitrators versus before a judge and jury. When you signed paperwork
with your stockbroker, there was probably a provision included in your
documents that outlined the details of how a dispute must be handled.
You may not have realized that you were agreeing to have potential claims
resolved in stockbroker arbitration. There are some benefits of FINRA
arbitration though, that should not be overlooked. For example, claims
handled in arbitration generally cost less than going to trial and it
typically does not take as long to recover your award. In addition, aggrieved
investors who pursue claims in FINRA arbitration have the choice as to
whether to have the case heard by an “all public” panel of
arbitrators or to include one “industry” arbitrator who is
knowledgeable in the securities industry.
For more information, contact an experienced investment fraud attorney
at Meyer Wilson, LPA by calling or filling out our online
form. The case evaluation is free. Be sure to order a FREE copy of attorney
David Meyer’s book, Five Signs of Investment Fraud…And What
to Do if it's Happened to You.