After reporting on the appearance of FINRA CEO Robert Cook before a House Subcommittee last week, we thought we’d take a more intensive look at FINRA’s diversity efforts. As indicated in last week’s Arb Alert (SAA 2017-35), during the questioning of Mr. Cook, Rep. Gregory W. Meeks (D-NY) made specific reference to the Dispute Resolution […]

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By Christopher G. Lazarini The doctrine of res judicata bars a party from re-litigating issues that were or could have been asserted in an earlier action between the same parties. Morgan Stanley Smith Barney, LLC vs. Verble, No. 3:17-CV-175 (E.D. Tenn., 7/31/17). A Closed Case In 2014, Morgan Stanley sued Defendant in a FINRA arbitration […]

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Former American Arbitration Association chief Robert “Bob” Coulson passed away on September 9th at age 93. Mr. Coulson led the AAA for many years, first as Executive Vice President and then for two decades as President and CEO before retiring in 1994. Under his leadership, the alternative dispute resolution field and the Association enjoyed tremendous […]

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Florida only recently authorized arbitrators to assess attorney fees, changing a significantly more cumbersome process for obtaining that item of damages that previously required the intervention of the courts. As we explained in SAAs 2016-21 and 2013-42, under Florida case law, arbitrators were for many years prohibited from awarding attorney fees. They could rule on […]

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By Paul J. Dubow *In order to allege tortious interference arising out of the filing of a Form U-5, the plaintiff must allege specific opportunities and/or relationships with which the defendant has interfered. **A defendant is only liable for negligent misrepresentation to a person for whose guidance the information is supplied. Kollar vs. Allstate Insurance […]

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By Pete S. Michaels It is appropriate for a court in a SEC enforcement proceeding to authorize the receiver of a defendant entity to distribute to each investor an inflation adjustment based on the Consumer Price Index. SEC vs. Amerindo Investment Advisors, Inc., No. 05-CV-5231 (S.D. N.Y., 7/14/17). The Enforcement Action The SEC brought this […]

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FINRA instituted a series of reforms refining the manner in which it conducts expungement proceedings, spurred by a report by the Public Investors Arbitration Bar Association (PIABA) issued in October 2013, and culminating in the adoption of Rule 2081, effective July 30, 2014. In this survey, we analyze the effect of these reforms on the […]

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By Paul J. Dubow The Second Circuit declines to adopt the First Circuit’s test that requires issuers of registration statements to report results from interim financial statements if they are an “extreme departure” from previous financial results. Stadnick vs. Vivint Solar, Inc., No. 16-65 (2nd Cir., 6/21/17). A Unique Business Model Defendant Vivint, a manufacturer […]

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With seven months of 2017 tabulated, FINRA, in its monthly statistical report on the activities of its dispute resolution unit (ODR), has recorded fewer than two thousand new cases filed. The last several months have been stronger than the first part of the year — with more than 300 cases filed in May and June, […]

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