In SAA 2017-10, we reported that Congressional Democrats announced March 7 the reintroduction of six bills aimed at curtailing mandatory arbitration in consumer or employment contracts. In the ensuing weeks, there have been changes, so we decided to ask resident futurist, Fordham Law prof, and SAC Contributing Legal Editor and Board Member George H. Friedman […]

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By Ben Suter *A complaint for violation of Rule 10b-5 against an investment advisor by his clients fails to adequately plead the “in connection with” prerequisite, where it does not tie specific misleading statements to particular losing securities transactions, defendants’ corresponding scienter and/or defendants’ alleged motive to purchase securities they knew would decline. **Section 215(b) […]

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By Richard P. Ryder INTRODUCTION For many years now, the FINRA Office of Dispute Resolution has published monthly statistics about its arbitration and mediation operations. The reported data has offered current and historic information about case inflow and outflow, the types of allegations and securities behind customer disputes, the number of cases going to hearing […]

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By Pete S. Michaels In a criminal prosecution for insider trading, a personal benefit may be inferred where a tipper makes a gift of inside information to a trading relative or friend. USA vs. Bray, No. 16-1579 (1st Cir., 3/22/17). Robert H. Bray appealed his criminal conviction for insider trading on the grounds that the […]

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The New York State Bar Association held its bi-annual program on securities dispute resolution in New York City on April 6, which this year adopted the theme and title, “Securities Arbitration and Mediation 2017: The Courage to Simplify.” Program Co-Chairs were David E. Robbins and James D. Yellen (ed: both of whom, we are proud […]

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By Ben Suter A court does not exceed its jurisdiction under the California Arbitration Act by amending a judgment that confirmed an arbitration Award to insert the correct name of the real defendant when the mistake was not “evident” within the 100-day statutory timeframe for correcting Awards. Williams vs. Lytel, No. B269254, 2017 Cal. App. […]

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By Paul J. Dubow Registered representatives who effect transactions on a customer’s behalf without informing the customer have implicitly recommended those transactions, thus triggering application of the suitability rule. Milliner vs. Mutual Securities, Inc., No. 15-03354 (N.D. Cal., 3/17/17). How We Got to Here After suffering a 93% loss in their securities accounts, plaintiffs brought […]

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While we are waiting for the February 2017 FINRA-ODR statistics to be posted on the Authority’s Website, we turn again to the Hearing Location table chart. Providing statistics on the availability of arbitrators and the caseload by hearing location stands as the most prominent enhancement to FINRA’s monthly statistical report. As we have reported, FINRA […]

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