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Arbitration Awards Arbitration Financial Industry Regulatory Authority (FINRA)

Carlton Fields

Second Circuit Affirms Dismissal of Challenge to FINRA Award

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The Second Circuit Court of Appeals has affirmed the dismissal of a challenge to a FINRA arbitration award after concluding that federal courts lacked jurisdiction over the matter....more

Carlton Fields

Fourth Circuit Holds It Lacks Jurisdiction to Consider Petition to Vacate

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The Fourth Circuit Court of Appeals recently held that it lacked jurisdiction over a petition to vacate an arbitration award....more

Carlton Fields

Second Circuit Affirms Schwab Victory in FINRA Arbitration

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The Second Circuit Court of Appeals recently affirmed a decision confirming an arbitration award in favor of Charles Schwab & Co. over allegations of discovery abuses that purportedly rendered the arbitration proceeding...more

Troutman Pepper Locke

Securities Industry Arbitrations and Litigation Update: FINRA Member Firms Don’t Forget to “Dot Your I’s and Cross Your T’s” in...

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As any Wall Street litigator knows, in the securities industry, it is typical for brokerage firms to incentivize their employed financial advisers with significant upfront compensation at the beginning of a relationship or...more

Carlton Fields

Arizona District Court Confirms Arbitration Award, Denies Cross-Motion to Vacate

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Relying on the Federal Arbitration Act (FAA) and noting that the FAA “enumerates limited grounds on which a federal court may vacate, modify, or correct an arbitral award,” the U.S. District Court for the District of Arizona...more

Carlton Fields

Schwab Wins Battle Over Confirmation of FINRA Arbitration Award Predicated on Alleged Discovery Abuses

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Charles Schwab & Co. successfully petitioned the Southern District of New York for confirmation of a FINRA arbitration award against one of its account holders, fending off challenges predicated on Schwab’s alleged discovery...more

Burr & Forman

Georgia Appellate Court Rejects Panel Manipulation Claims, Reverses Vacatur

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Last January, an aggressive bid to vacate an arbitration defeat raised claims that a large bank’s brokerage unit and its counsel manipulated FINRA’s arbitrator-selection process through a “secret agreement.” The Georgia...more

Burr & Forman

FINRA Report Denies Arbitrator Selection Manipulation

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On June 29, 2022, FINRA released the report of its independent investigation, concluding that allegations of a “secret agreement” to avoid certain arbitrators on an industry lawyer’s cases were untrue. The allegations...more

UB Greensfelder LLP

FINRA’s Fixation On Unpaid Arbitration Awards Has Morphed Into Something More Dangerous

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Shortly, I hope to get around to drafting a blog post about FINRA’s latest demonstration of abasement to PIABA and claimants’ counsel everywhere, namely new Rule 4111. But, that rule is such a monstrosity that it will take a...more

UB Greensfelder LLP

Filing A Frivolous Customer Arbitration Carries Real Monetary Risks

UB Greensfelder LLP on

While the FINRA arbitration system certainly is not perfect – just see Alan’s troubling blog from last week regarding the Motion to Vacate that was granted by a Judge in Atlanta – we like to think that when cases go to...more

UB Greensfelder LLP

Order Granting Motion To Vacate Arbitration Award Raises Question: Is FINRA’s Meeting Its Obligation To Provide A Fair Process?

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Motions to vacate an adverse arbitration award are rarely granted by courts. Indeed, that should come as no surprise to anyone inasmuch as the awards rendered at the conclusion of the arbitral process are explicitly designed...more

BCLP

The Song Remains the Same - FINRA’s Riff on High-Risk Brokers and Firms

BCLP on

Key Takeaways: ..On September 28, 2021, FINRA released Regulatory Notice 21-34 which introduces additional new rules aimed at addressing high risk or “recidivist” brokers and the member firms that hire them.  ..Under...more

BakerHostetler

The Supreme Court Now To Determine the Boundaries of Federal Court Jurisdiction Over Federal Arbitration Act Proceedings

BakerHostetler on

The U.S. Supreme Court has now granted certiorari to decide if federal courts have subject matter jurisdiction to confirm or vacate an arbitration award under the Federal Arbitration Act (FAA), Sections 9 and 10.  9 U.S.C. §§...more

Patterson Belknap Webb & Tyler LLP

Commercial Division Confirms Arbitration Award Entered Against Party Who Objected to the Jurisdiction of the Arbitrators but...

In Fava v. Morgan Stanley Smith Barney, Inc., Justice Barry R. Ostrager of the New York County Commercial Division denied Petitioner Frank Fava’s (“Fava”) motion to vacate an arbitration award issued by the Financial Industry...more

Carlton Fields

Court Affirms FINRA Arbitration Award to Charles Schwab, Finding No Evident Partiality or Other Arbitrator Misconduct

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Thomas Sanduski petitioned to vacate a Financial Industry Regulatory Authority arbitration award of $418,518 to Charles Schwab, claiming that one of the arbitrators was partial to Charles Schwab and that the panel was guilty...more

Carlton Fields

District Court of Maryland Denies Motion to Dismiss Petition to Vacate Arbitration Award

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The petitioner filed a complaint seeking to vacate an arbitration award, and the respondents moved to dismiss. Despite “the deferential standard of review” given to arbitration awards and the petitioner’s “significantly...more

Carlton Fields

Court Denies Petition to Vacate Arbitration Award Based on Judicial Estoppel

Carlton Fields on

This case arises out of plaintiff John B. Napoleone’s failure to repay a sign-on bonus of $100,000 to his former employer, defendant S2K Financial LLC, under the terms of his employment agreement. S2K commenced an arbitration...more

Carlton Fields

Fifth Circuit Affirms Confirmation of Arbitration Ruling in Favor of Ameriprise Financial

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The Fifth Circuit affirmed the confirmation of an arbitration ruling in favor of Ameriprise Financial Services Inc. In 2015, Ameriprise sought a temporary restraining order against Jeremy Walker, a former employee of an...more

UB Greensfelder LLP

All-Public Arbitration Panels Are Paying Out Money At An Unprecedented Rate...Just As PIABA Intended

UB Greensfelder LLP on

I read an article this week in Investment News with the following headline: “Brokerage Customers Winning More FINRA Arbitration Cases.” As a guy who defends customer cases, I was naturally intriguied by this. According to the...more

Carlton Fields

Court Confirms Arbitration Award, Finding It Was Based in Part on “Plain Error,” but Did Not Amount to Manifest Disregard of the...

Carlton Fields on

The plaintiff commenced an arbitration proceeding with the Financial Industry Regulatory Authority (FINRA) against two of his former investment brokers and their former employers — Concorde and Westminster. The plaintiff...more

UB Greensfelder LLP

Make No Mistake, PIABA Cares About One Thing: Getting Paid

UB Greensfelder LLP on

If you read this blog even semi-regularly, you know that I have taken a few shots at PIABA. I think they’re well earned, but some people – particularly PIABA lawyers, not surprisingly – have suggested that I’m overdoing it....more

Carlton Fields

New York Federal Court Finds Vacatur of Arbitration Award Not Warranted

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Michael Miller (“Miller”) filed a petition to vacate an arbitration award against UBS Financial Services Inc. and UBS Credit Corp. (collectively “UBS”) claiming that “the award is unsound because two of the three arbitrators...more

Carlton Fields

New York Federal Court Rejects Attempt To Vacate Arbitration Award Related To Theft Of Corporate Assets

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A New York federal court recently confirmed an arbitration award related to the alleged theft of more than $100 million from a Luxembourg company, SLS Capital. SLS’s liquidator in bankruptcy court then initiated a FINRA...more

Carlton Fields

District Court Vacates Award Based On Violation Of FINRA Rules For Manifest Disregard Of The Law

Carlton Fields on

A district court has decided against giving an arbitration panel a third chance to get it right after the court found that the panel manifestly disregarded the law in its initial and modified arbitration awards....more

Carlton Fields

California District Court Denies Motion To Vacate FINRA Arbitration Award

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A California district court recently denied a motion to vacate an arbitration award which had denied a plaintiff’s claims brought before the Financial Industry Regulatory Authority (“FINRA”)....more

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