Of course, you can, but it is usually not advisable. Generally, you are at a huge disadvantage attempting to work something out with the financial advisor or his firm. You are usually much better off consulting a qualified attorney to deal with the brokerage firm at a very early stage.

Each case is different. We look at the investor’s age, health and investment experience, as well as the amount of loss as it relates to the investor’s net worth. We look carefully at the investment product sold to the investor. We also look at the solvency of the financial advisor and brokerage firm. There is no charge for an initial case evaluation.

The simple answer is no. In most cases, you can sue the brokerage firm, because the financial advisor was acting as the agent of the brokerage firm. With that said, even though the financial advisor might not be named as a party, his or her name and his or her wrongful actions will appear in the Statement of Claim filed in the arbitration.

Virtually all brokerage firms include an “arbitration clause” in their initial customer agreements or applications to open accounts, which require customer disputes be submitted to binding arbitration before an organization such as the Financial Industry Regulatory Authority (“FINRA”).

Yes. The sooner you file a claim the better. FINRA has filing eligibility rules that allow the filing of claims for six (6) years from the occurrence of the event giving rise to the claim. However, there may be statutes of limitation that shorten that period.

Securities arbitration is a method of settling disputes between customers and brokers/broker dealers by impartial arbitrators who are knowledgeable about securities. FINRA arbitrations are commenced by the filing of a Statement of Claim. The Statement of Claim sets forth the details of the dispute from the Claimant’s point of view. In a clear and concise manner, it is “your story” of how you lost money with a financial advisor or broker-dealer. In the Statement of Claim you will make a claim for money damages.

The entire process should generally be between 12 and 18 months. However, for elderly or infirm clients the entire process may be shortened substantially.

Although no two cases are usually alike, most cases are handled on a contingent fee basis, which means that the client pays attorneys’ fees only if there is a recovery. The client is responsible for and funds on a pay-as-you go basis the out-of-pocket costs and expenses, which include an initial loss analysis from a damage expert, arbitration forum fees, hearing session deposit, mediation fees (if necessary), expert witness fees (if necessary), travel expenses, and session fees for the actual hearing (if necessary). We will give you an estimate of the costs associated with the arbitration process depending upon the complexity of your case and the amount of your loss. Our experience is that in most cases, these arbitration costs and expenses are far less than they would be in court litigation.

Mediation is totally voluntary; however, it is highly encouraged by FINRA. Mediation will occur, if the parties agree, at some time prior to the actual arbitration hearing, to a mediation by a qualified independent third party who will attempt to facilitate a settlement. The mediator’s role is to attempt to resolve the dispute between the adverse parties, but there is no requirement that anyone settle at the mediation. All information given to the mediator by the parties is confidential, and the discussions with the mediator cannot be used at the arbitration hearing. Approximately 70% of cases filed at FINRA settle either by direct negotiations between the parties or mediation.

Yes. In court, you have a right to conduct extensive discovery, including depositions, and you have the constitutional right to a jury trial. However, assuming you signed an arbitration agreement with the financial advisor, you may have no right to file in court and must file an arbitration. There are some advantages. The biggest advantage is that your claim in a FINRA arbitration will be will be finalized in a much shorter time period than going to court, and it will be heard by arbitrators with specific industry knowledge. Since the grounds for setting aside an arbitration award are extremely limited, costly appeals are eliminated. In addition, if you obtain an arbitration award, FINRA rules require prompt payment.