When is a Securities Arbitation Lawyer Needed?

If in the situation where a stockbroker or their firm has engaged in misconduct, a securities arbitration lawyer can help navigate the process of recovering financial losses. Even though arbitration is an alternative dispute resolution process less contentious than litigation, a securities arbitration lawyer can be helpful.

A securities arbitration lawyer can help since arbitration proceeds similarly to a trial with regard to the presentation of the evidence and crafting persuasive arguments to the panel. This panel, usually composed of three individuals, will likely include a member from the securities industry, with the remaining two selected from professional industries such as law or accounting.

After the arbitrators review the evidence presented, they will decide whether recovery of the losses should be awarded and the amount.

A short history of securities arbitration

As a general rule, arbitrations may only occur either when the parties have agreed to arbitration or the parties have a contract requiring arbitration. However, after 1987, when a Supreme Court case found arbitration agreements enforceable, securities arbitration dramatically increased.

The likelihood that you have already agreed to arbitrate claims against the broker or their firm is high because most people involved in this industry have already included such language in the paperwork that must be signed before proceeding.  

Securities arbitration claims

Injured clients have the option of bringing a wide range of claims in the arbitration including:

  • Churning
  • Unsuitability
  • Negligence
  • Misappropriation
  • Failure to diversify
  • Unauthorized trading
  • A material misrepresentation or omission
  • Breach of fiduciary duty

However, even though many options exist, selecting the correct claim is the most important part as different statutes of limitations may interfere with the available claims. Successful claims usually involved the assistance and knowledge of a securities arbitration lawyer because they have the experience to evaluate the merits of the claim and have properly counseled the aggrieved investor.

For example, after selecting the correct applicable claim, a securities arbitration lawyer can then select the appropriate forum to proceed to the arbitration phase.  Shortly afterward, the lawyer can then present the evidence to the panel indicating that the stockbroker is responsible for the financial losses.   

Hiring a securities arbitration lawyer 

Because parties are entitled to representation during the arbitration process at any stage, should the need arise, ensure that the correct securities arbitration lawyer is hired by:

  • Asking the right questions as early as possible 
  • Making sure the lawyer has knowledge in the specific claim area
  • Hiring a lawyer with experience in arbitration protocol and procedures 
  • Identifying whether the claim involves a legal or regulatory issue 
  • Selecting the appropriate arbitrators from the randomly-generated lists supplied to both parties
  • Communicating the negative impact that this financial loss has had on your life

Because consultation with a securities arbitration lawyer is still protected by attorney-client privilege, the opportunity to communicate with a lawyer as a preliminary matter is definitely advisable.  Before wasting even more time and resources, be sure to speak with an impartial third-party who is not emotionally involved. 

Call (732) 449-0449 today to reach Anthony J. Cafaro, P.C..

NOTE: This is for informational purposes only and does not constitute legal advice.


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