Securities Arbitration

Whether in Arizona state or federal court or before panels of arbitrators, the attorneys at Heurlin Sherlock Laird have the knowledge, skills, and experience to represent investors who have been victimized by unlawful and unscrupulous stockbrokers, securities firms, and promoters.

When an investor suffers an economic loss due to misleading advice, fraudulent transactions, or other violations of securities laws, he or she may have a claim against the stockbroker or investment advisor for breach of duty or other wrongful misconduct.  The injured investor may wish to file a lawsuit to recover compensation for the loss, although in many cases he or she will be required to submit the claim to arbitration for resolution. The attorneys at Heurlin Sherlock Laird possess the skills to fight for our client's interests, whether before judges or professional arbitrators.  Ours is one of few Tucson firms with the experience to investigate the complex and complicated web of securities regulations, and uncover the legal violations which will enable the wronged investor to recover compensation for the financial injury he or she has suffered. Stockbroker misconduct can take many forms, such as:

• Unsuitability- broker recommended investments that were inappropriate for the investor's goals, age, or objectives.
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• Misrepresentations and omissions- Sellers of securities must provide accurate information about the investments they recommend. Any misrepresentation or omission, whether intentional or negligent, is a violation of state and federal securities laws.
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• Unauthorized trading or failing to follow client instructions
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• Breach of fiduciary duty- when the broker knows the investor is relying on the broker for advice, a high level of trust exists, creating an obligation for the broker to act in good faith, and to act with the highest degree of loyalty and fidelity
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• Negligence- stockbrokers and advisors are liable if they fail to use diligence or act as a reasonable and prudent broker in the handling of an account
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• Failure to supervise- brokerage firms have an obligation to supervise the activities of their brokers, review every trade submitted, and investigate suspicious activity.
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• Churning- this illegal excessive trading is proven when the broker controls the account, trading is excessive in light of investment objectives, and the broker intended to defraud the customer or acted willfully or in reckless disregard of the investor's best interests.

Arbitration

As a requirement to open an account with most firms, investors must sign an opening account agreement that contains an "arbitration clause."  This clause requires that any dispute be resolved through arbitration, rather than court litigation.  Arbitration of claims against stockbrokers is pursued through the Financial Industry Regulatory Agency (FINRA).

In general, arbitration provides a fair and impartial means of dispute resolution, and is faster and less expensive than trial. Judges and juries have no role in an arbitration; instead, the case is decided by a panel of three arbitrators selected from a list of qualified individuals. Typically, the arbitration panel is comprised of an attorney, a person with experience within the securities industry, and a "public arbitrator" who is trained as an arbitrator yet is not an attorney and has no connection to the securities industry.

An arbitration is typically scheduled within one year of filing a claim. The decision of the arbitrators must be made within 45 days of the hearing, and the broker must pay any award within 30 days. Decisions are final and binding on all parties.

Bruce R. Heurlin serves as a FINRA arbitrator, often as the chairperson of the arbitration panel. For assistance with your securities litigation or arbitration matter, contact the lawyers at Heurlin Sherlock Laird today.