Attorney for Stockbroker Mediation
If you lost money due to broker misconduct or fraud, you may be wondering
how you recover your losses. Do you need to go through a formal arbitration
proceeding or is there a less formal way of resolving your broker misconduct
case? There is an alternative to
stockbroker arbitration and litigation in regards to settling a dispute with your broker. It is
known as mediation. The Financial Industry Regulatory Authority (FINRA)
handles over 1,000 cases in stockbroker mediation on an annual basis.
According to FINRA, many of the cases that go through their mediation
program settle within a few weeks to a few months after making a formal
agreement to mediate.
Steps in the Stockbroker Mediation Process
The following will occur during the mediation process:
The mediator is selected. When you choose mediation, both parties will agree upon a neutral third
party to aid in the negotiations. This person will possess a thorough
understanding of securities law. The mediator will not be deciding the
outcome of the case. Instead, he or she will focus on guiding both parties
to an acceptable solution.
An opening session is held. This session involves both parties and the mediator. Each side will have
the opportunity to explain background information, key facts, damages
Separate meetings take place. The mediator will meet privately with each party following the opening
session, which are referred to as caucuses. During these caucuses, the
mediator will hear the critical issues pertaining to the dispute. These
meetings are confidential and the purpose is to help the parties move
closer to a settlement.
Proposed resolution is made. During the mediation process, both sides have the chance to brainstorm
solutions that would be acceptable to each party. If the parties agree
to a solution, the dispute is resolved and a settlement agreement is signed.
Mediation is voluntary. If you are not satisfied with the outcome of the
negotiations, you do not need to sign the settlement agreement. You can
proceed to arbitration. Often, the most effective time to mediate a claim
is once the formal arbitration claim is pending with FINRA and the parties
have completed all the fact-finding and evidence gathering.
The Many Benefits of Stockbroker Mediation
If you have a complaint against your stockbroker or brokerage firm, stockbroker
mediation may be the right answer for you. Mediation provides a chance
to hash out your differences and potentially come to a settlement in your
case, and you don’t give up your rights to pursue arbitration or
litigation later on if it doesn’t work out.
Mediation can have many benefits:
Mediation usually moves quickly, and you may be able to settle some portions
of your dispute even if you can’t agree on everything. This means
that later arbitration can move more quickly—and you’ll have
a better understanding of your case going into arbitration.
Mediation may be a more cost-effective solution in many cases because
the expenses are generally lower and you potentially stand to miss less
time at work or in your personal life.
Because the mediator has no power to decide the settlement, you have more
control over the process and can directly address concerns with your broker
or brokerage company.
More options for resolution.
Because it is informal and voluntary, you may have the power to come up
with more creative solutions for settlement than you would have access
to in arbitration or litigation.
Coming to an Acceptable Resolution in Mediation
If an acceptable resolution has been reached, the following will occur:
A document, which includes all of the terms of the settlement, will be drafted. Parties can protect themselves by signing this document, also referred
to as a memorandum of understanding of essential terms, at the end of
the process if a settlement was reached.
A written settlement will be executed. Once all of the terms have been agreed to, a written settlement is be
created and signed. A signed written settlement is final and binding.
You can learn more about what to expect during the mediation process by
watching attorney Chad Kohler's video below.
Do I Need a Securities Mediation Attorney?
Even though mediation is considered to be less formal than other forms
of dispute resolution, by no means should you attempt it alone. The brokerage
firm will be relying on their group of sophisticated defense lawyers,
even during the mediation process. It is therefore in your best interests
to have an experienced securities mediation lawyer on your side, guiding
you through the process. For more information or for a free case evaluation,
contact Meyer Wilson by calling or filling out our
online form. We have represented over 800 individual and institutional investors from
across the country in securities mediation, arbitration, litigation, and
class action lawsuits.