We learned this week that FINRA had a lot to say about the most recent statistical study on expungement performed by the Public Investor Arbitration Bar Association. We led last week’s Arb Alert (SAA 2015-39) with an article about PIABA’s “followup to its influential 2013 study of expungement” and the press conference that introduced the […]

Under New Jersey law, an arbitration agreement is unenforceable if it does not clearly state that the signatory is waiving the right to pursue his or her legal remedies in court. Barr vs. Bishop Rosen & Co., Inc., No. A-2502-14T2 (N.J. App. Div., 10/26/15). A Costly Defense Broker Stephen Barr worked at Bishop Rosen from […]

The Public Investor Arbitration Bar Association (PIABA) rolled out a follow-up to its influential 2013 study of expungements in stipulated Awards in a press teleconference on Monday, October 19, 2015. PIABA’s conclusion: the reforms FINRA adopted in response to the earlier report have failed and it must now adopt an entirely new set of procedures. […]

By Sarah G. Anderson A broker-dealer that purchases only part of another broker-dealer’s business may be liable as the corporate successor of the earlier firm with respect to the part it purchased. National Credit Union Administration vs. Wells Fargo, LLC, No: 10-cv-00143 (D. Conn., 9/30/15). The Acquisition and the Embezzlement The National Credit Union Administration […]

About a hundred people attended the “field hearing” on arbitration held by the Consumer Financial Protection Bureau (“CFPB”) on Wednesday, October 7 at the History Colorado Center in Denver, Colorado. The entire event lasted about two hours and proceeded in three segments: an opening statement by CFPB Director Richard Cordray; a panel discussion comprised of […]

By David C. Franceski, Jr. A party to arbitration with constructive knowledge, i.e., that the party knew or by the exercise of reasonable diligence should have known, of a basis to challenge an arbitrator’s participation during the arbitration, who fails to do so until after an unfavorable Award is entered, waives the right to vacate […]

By George H. Friedman* For most of my fourteen years as FINRA’s Director of Arbitration, I perceived myself to be tilting at windmills trying to make the case that FINRA’s arbitration program was the fairest consumer arbitration program is existence. I won’t bore readers by repeating here the many facts backing up my assertion. They […]

No tolling occurs during the pendency of an arbitration that precedes the filing of a lawsuit alleging federal securities claims. Zarecor vs. Morgan Keegan & Co., Inc., No. 13-3315 (8th Cir., 9/1/15). The Arbitration When the RMK mutual funds collapsed and Morgan Keegan, as the underwriter and a primary seller of the funds, was named […]