The SEC’s Office of the Investor Advocate and the Commission’s Ombudsman have submitted a somewhat belated comment on FINRA’s proposed amendments to the expungement procedures, praising the Authority for making the effort, but suggesting more ways to improve the process. We reviewed in SAA 2018-07 the comments – due February 5th – from major institutional […]

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The Financial Industry Regulatory Authority has issued an Investor Alert warning that scammers have been defrauding investors by posing as financial regulators. “Neither FINRA, nor any of its executives, will ever provide a ‘guarantee’ on an investment or offer to facilitate your participation in any sort of money-making scheme. Never.” So reads a FINRA Investor […]

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By Jill I. Gross A whistleblower claim brought pursuant to the Dodd-Frank Act is arbitrable where it is covered by a valid arbitration agreement. Daly vs. Citigroup Inc. & Citigroup Global Markets, Inc., No. 16-cv-9183 (S.D. N.Y., 2/6/18). Fired and Suing Plaintiff Erin Daly, a former Assistant Vice President in Citibank’s private banking division, claimed […]

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In this piece, we analyze some of the uses one can make of FINRA’s Hearing Locations table. Click a link called “table format” above the map of the United States that appears in FINRA-DR’s monthly statistical report on its operations and a “Hearing Locations” table appears on the computer screen. The table lists alphabetically all […]

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By Jeremy Root *A forum selection clause in a compensation agreement incorporated by reference into an offering letter does not preclude or waive the applicability of an arbitration provision in the offering letter itself, where the forum selection clause merely requires the case to be filed in a particular court, not resolved there. **A merger […]

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By Ben Suter A contract provision authorizing an award of attorney fees and costs to the prevailing party in an action to “enforce” the contract does not apply where the suit alleges fraudulent misrepresentations and does not assert a cause of action “on the contract” that authorizes the award of attorney fees and costs. Stella […]

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The year-end statistics from FINRA’s Office of Dispute Resolution have been posted in the “Arbitration & Mediation” section of the FINRA Website. Reflected in this current report are case filings that are low and a mild improvement in closing cases, a trend that is moderating the flow of pending cases in the FINRA-ODR pipeline and […]

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By Paul J. Dubow A sophisticated investor that purchases mortgage-backed securities notwithstanding warnings that there were severe problems in the housing market cannot assert that it made the purchases in reliance on prospectus statements. Federal Home Loan Bank of Seattle vs. Barclays Capital, Inc., No. 75913-2-I (Wash. App., 12/11/17). In the Court Below In early […]

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EXPLAINED AWARD: ANDERSON v. ALLEGIS INVESTMENT ADVISORS, LLC, AAA ID #01-16-0005-0320 (Salt Lake City, UT, 1/8/18). This 21-page AAA Explained Award, issued by a sole Arbitrator, holds an investment advisory firm liable to four of its customers for more than $900,000 in damages, including punitive damages awarded to three of them and damages for emotional […]

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