As a new year begins, we like to take the opportunity to review some of the most notable securities arbitration Award statistics of the last year. First up: the largest awards of damages. The single largest one in 2016 issued in Speer v. Morgan Stanley Smith Barney LLC, FINRA ID #13-00549 (Tampa, FL, 3/21/16), a […]

By Paul J. Dubow A party who engages in extensive motion practice, takes depositions, and seeks production of documents before filing a motion to compel arbitration waives the right to arbitration. Dagostino vs. LPL Financial, LLC, No. D069541 (Cal. App., 4Dist., 12/6/16). The Litigation In February 2015, plaintiffs filed a first amended complaint against LPL […]

The Supreme Court on January 13th granted certiorari in three cases involving the issue of whether the Federal Arbitration Act prevails over the National Labor Relations Act when it comes to enforcing class action waivers in employment arbitration agreements. Resident futurist, Fordham Law prof, and SAC Contributing Legal Editor and Board Member George H. Friedman […]

By Jack D. Ballard Where a plaintiff in a Dodd-Frank whistleblower suit notified his supervisor of his concerns about unlawful activities and a later regulatory action addresses the same issues, followed by the plaintiff’s termination, it is reasonable to infer that his employer was aware that he complained to the regulator. Feldman-Boland vs. Morgan Stanley, […]

FINRA announced its 2017 regulatory and exam priorities, chief among them corporate culture, in a January 4th Cover Letter to firms that included a link to a hefty 11-page Open Letter to the securities industry. For the first time in three years, arbitration is included. This is the first such Letter issued by FINRA’s new […]

By James L. Komie Allegations of flash trading that involve a pattern of orders placed and then canceled milliseconds later are not enough, standing alone, to create the strong inference of scienter required to state a securities fraud claim under the Exchange Act and the PSLRA. CP Stone Fort Holdings, LLC vs. Doe, No. 16 […]

Resident futurist and SAC Contributing Legal Editor and Board Member George H. Friedman blogged in November on what the election results mean for arbitration. In the weeks leading to Inauguration Day, we will focus on one or another of his predictions, updating them as events transpire. This week’s installment – the last in the series […]

By William D. Nelson Administrative law judges working for the SEC are inferior officers for purposes of the Appointments Clause of Article II of the Constitution. Bandimere vs. SEC, No. 15-9586 (10th Cir., 12/27/16). A Pending Adjudication In 2012, the SEC brought an administrative action against Mr. Bandimere, a Colorado businessman, alleging that he violated […]