No. 12-70681 (9th Cir., 1/16/14). Enforcement Practice/Procedure * Product/Practice Issues (Unlegended Stock) * Capital Formation (Reverse mergers) * 1933 Act (§§4(4), 5 & Public Offerings) * Fiduciary Standards (Brokers) * Duty of Inquiry * Standard of Review (Substantial Evidence; De Novo; Abuse of Discretion). A broker must make a reasonable inquiry to determine if a […]

So many changes were being made to the Arbitration (and Mediation) Codes by FINRA Dispute Resolution, at one time it was hard to keep up. The pace slowed in 2012 — four new changes were proposed and approved and one proposal from 2011 was approved in 2012 (SAA 2013-01) – and in 2013, it slowed […]

FINRA has released its statistical report on arbitration and mediation activities for the month of December 2013, giving us the opportunity to take a statistical look at the year as a whole. Readers may recall our covering FINRA statistics just last week, but that was November’s figures. We learned (with some chagrin) that they were […]

FINRA last week announced its 2014 regulatory and exam priorities, chief among them suitability and bad brokers, in a January 2nd press release that included a link to an 11-page open letter to the securities industry. Susan Axelrod, FINRA’s Executive Vice President for Regulatory Operations, said in the release that the letter’s purpose is “to […]

No. 13 Civ. 2318 (S.D. N.Y., 10/25/13). FRCP (Rule 8 “Fair Notice,” 12(b)(6) “Claim for Relief”) * Timeliness Issues (Contractual Limitations) * Sales Practice/Product Issues (Collateralized Debt Obligations) * Misrepresentations/Omissions * Pleading Requirements/Issues * Remedies (Punitive Damages). *Under New York law, a fraud claim that is merely duplicative of a breach of contract claim is […]