Lawsuit vs. Arbitration for Broker Misconduct

Lawsuit vs. Arbitration for Broker Misconduct

Finding out that you’ve lost a sizable amount of money on the stock market can be devastating, but when you discover that your losses were caused by the gross negligent misconduct of your stockbroker and/or brokerage firm, that devastation can turn to rage.

You should always be able to trust your broker. After all, they are responsible for a significant portion of your investments. When they betray you in this way, you’ll probably be looking at what your options are for bringing them to justice. Do you bring a lawsuit against your broker? Is there somewhere that you can report their behaviors and your stock losses? Who will make them repay you?

In some cases, bringing a lawsuit against them may be a good option, but the vast majority of wronged investors will increase their chances of obtaining the retribution they deserve by pursuing arbitration through the Financial Industry Regulatory Authority (FINRA). An experienced stockbroker malpractice lawyer at Meissner Associates can help you file your request and seek full repayment of the stock losses you’re owed.

Why Arbitration Is a Better Option

You may be wondering why arbitration is a better course of action to take than filing a claim in civil court against your brokerage firm or stockbroker. To start, when you go to arbitration, chances are that your case will be resolved far sooner than if you go to court.

Arbitrators can settle your case in as few as a couple of weeks after your hearing, or as long as eighteen months, but going to court could mean your case taking more than a couple of years to come to a close.

Furthermore, if you go to arbitration, your case will be heard by the Financial Industry Regulatory Authority. This means that the individuals who play a part in the regulation of securities markets will be able to put a stop to your brokerage firm’s unscrupulous misconduct.

When this happens, other investors who were working with this particular brokerage firm or stockbroker will be protected from further stock losses or from having to endure a stock loss altogether, if possible.

How FINRA Arbitration Hearings Work

If you choose to proceed with arbitration, you can expect to plead your case before three FINRA arbitrators. Similar to what would happen in court, the arbitrators will listen to the evidence that we present, and then the accused broker will have the chance to defend themselves.

Next, the panel of arbitrators will begin to review both sides’ findings. As previously mentioned, depending on how complex your case is, it could take as long as eighteen months for the arbitrators to deliver a decision. Still, this is a better option than having to wait even longer when you take your chance in court.

Reach Out to an Experienced FINRA Arbitration Lawyer

Stock losses in excess of $100,000 need to be handled with the utmost of care, and a renowned FINRA arbitration lawyer at Meissner Associates can assist you in holding your stockbroker to account for their misconduct.

You can visit our office for a free case evaluation once you’ve made the decision to pursue full reimbursement of your losses. Just give our office a call at 212-764-3100 or submit the brief contact form we have provided at the bottom of this page.