How Long Do I Have to Pursue a Claim?
It's been a year or more since my accounts lost money. Can I still
have my case reviewed?
At Meyer Wilson we often get asked, "If it has been a year or more
since my accounts lost money, can I still have my case reviewed?"
More than likely, your stockbroker misconduct claim will be handled through
FINRA arbitration. This is because when you signed paperwork with your
stockbroker and opened your brokerage account, there was likely a provision
in the paperwork saying you agree to bring disputes before FINRA arbitration,
waiving your right to go to court.
For the most part, FINRA arbitration is an efficient, cost-effective way
for investors to resolve disputes with their brokers. But like any dispute
resolution method, there are time constraints for bringing a claim. In
many cases, potential clients don't come to us until years later.
This is because it often takes a significant amount of time to see the
effects of fraud.
The rules of FINRA arbitration allow claims to be filed within 6 years
from the date of the transaction / occurrence.
So, we have the potential to pursue claims going back 6 years, but it is
often more complicated than that. There are other legal and procedural
factors to consider that may limit or extend the timeframe to pursue a claim.