Securities Arbitration
Free Tax Debt Analysis
Have You Lost $100,000 Or More On Preferred Stocks?
Preferred stocks like: Fannie Mae, Lehman, Wachovia, Freddie Mac, WaMu, Merrill Lynch, Citicorp, and all other "preferred" bank stocks.
You may be entitled to all your money back plus interest!
Disputes with broker-dealers for securities losses are resolved in arbitration, which is an alternative to the traditional lawsuit in court. Rather than have a matter decided by a judge and jury, participants to a securities arbitration proceeding have their dispute resolved by a panel of arbitrators, in a private or semi-private proceeding. This forum is the most widely used means of resolving disputes in the securities industry which is a standard provision in typical financial brokerage agreements with investors. Even if you as an investor had no knowledge of this provision, it still is binding and except in certain prevents you from commencing any claim in a court of law. Nevertheless, investors have been successful in recovering their losses in securities arbitration in a prompt and cost effective manner.
Investors who have lost their money from preferred stocks may have a claim on the basis of their adviser recommending these securities which are unsuitable for an investor's particular situation or where the adviser makes incomplete or fraudulent disclosures of the degree of risk or lack of risk in these securities that is relied by the investor in deciding whether to make the investment.
The Arbitration Process
Most investor arbitrations take place under the rules of the National Association Of Securities Dealers ("NASD"). After filing a Statement of Claim, which contains a description of your claims and the facts that support them, and the requisite filing fees and hearing session deposit, NASD will serve the broker-dealer (the "Respondent") with your complaint. The Respondent then has 45 days to file its response. After that, the parties usually draft and serve each other with requests for information and documents that are relevant to the case. There are no depositions permitted.
Most claims can be decided by a panel of three arbitrators, one of whom is always a stockbroker or other member of the securities industry. The other two members of the panel are "public" arbitrators (i.e. people not associated with the securities industry). If any issues come up for any pending motions which must be heard prior to the final hearing, such issues are usually heard by the panel by conference telephone call.
The final hearing is usually held at the hearing location of the NASD that is closest to the residence of the customer at the time the dispute arose. The hearing commences with opening statements given by each side. The Claimant then puts on his case by calling witnesses, testifying himself, and offering exhibits. As in a trial, all the parties have the right to cross-examine each other's witnesses and, with the permission of the panel, conduct redirect examination. In addition, the panelists may ask their own questions. While the panel does not have to follow the rules of evidence, they sometimes do. After the Claimant is finished presenting his case, the Respondent has its turn. Then all parties have a chance to make closing arguments.
After the conclusion of the hearings, the arbitration panel decides, just like a judge would in court, if the respondents were at fault and how much they must pay for their misconduct. Approximately thirty days later, the NASD will publish the arbitration panel's decision in the form of an "award." If the investor wins an award, the member firm or associated person must pay it promptly or face disciplinary action.
How Much Can You Recover
The most basic remedy is damages for out-of-pocket losses. The out-of-pocket loss is generally the amount of money invested minus the returns and the residual value of the investment. In addition to out-of-pocket losses, an investor may be awarded damages based on the profits he would have made had the wrongful act not occurred. These lost profits are recoverable in many cases but it is very fact specific to each case. In addition, punitive damages may be awarded where the facts warrant them to punish the wrongdoer and to deter future misconduct. In certain cases, arbitrators may also award attorneys' fees to you for having to initiate and pursue the claim.
How Much Will It Cost Me
Our law firm will first provide you a free case evaluation. Then, if we believe you have a claim, we will offer to represent you by providing you with a written engagement letter usually on a contingency fee basis. This means that if no money is recovered from your claim, you will owe NOTHING to the law firm for attorney's fees. However, if there is money recovered, you agree to pay our law firm a fee based on a specific percentage from the gross proceeds of any recovery. The percentage is stated in the engagement letter.
If there is no recovery, then the client does not have to reimburse the law firm for the costs it has incurred. Costs and expenses include, but are not limited to photocopy charges, postage, couriers, investigative fees, legal research, word processing and accountant/expert fees to prepare and review damage reports.
The costs and expenses are separate and apart from the attorneys' fees. Our law firm will advance some of the costs; however, if there is a settlement and/or judgment amount, then the law firm will be reimbursed the costs it has advanced the client from the proceeds of the settlement or award. Depending on the facts and circumstances of your case, our law firm may limit the amount of costs advanced. Any such limitation would be included in our engagement letter and discussed with you before making your decision to engage our law firm.
Let us attempt to secure a return of your losses. Call us at 866.494.6829 for a free review of your case or send us an email.