What happens if I can't reach a settlement in securities mediation?
Many broker disputes are successfully resolved in securities mediation
handled through the Financial Industry Regulatory Authority (FINRA). During
the mediation process, negotiations take place between both parties with
the assistance of a mediator. Sometimes, an acceptable resolution cannot
be reached. If both parties decide that continuing to mediate will not
be beneficial or if the negotiations have come to a standstill, arbitration
may be pursued.
Mediation and arbitration are often pursued on parallel tracks, meaning
that a mediation may be scheduled while the arbitration claim is pending
with FINRA. In these circumstances, if the mediation does not result in
the successful resolution of the claim, the parallel FINRA arbitration
continues toward a final hearing. Given the non-binding nature of mediation,
most securities fraud attorneys do not recommend participating in a mediation
unless and until a FINRA arbitration is commenced, absent extraordinary
Even if a settlement cannot be reached in securities mediation, it does
not mean that time was wasted. Mediation often helps both parties identify
the various aspects of the case, plus assists in the preparation of the
final arbitration hearing. You can learn more by reading the articles,
How a Settlement is Reached in Securities Mediation and 7 Things You Might
Not Know About Securities Mediation. For a free case evaluation, contact
Meyer Wilson, LPA by calling or filling out our
online form. Our
securities mediation attorneys represent investors nationwide in mediation, arbitration and litigation claims.