Securities Arbitration
The Hershewe Law Firm of Arkansas advises that a securities arbitration attorney who can help in cases of possible fraud can avoid securities lawsuits and litigation. When an investor feels that they have been defrauded, our securities and investment lawyers can determine whether an investor can recover money when a stockbroker commits a sales practice violation. Investment professionals (who must be licensed) are fully familiar with what constitutes sales practice violations. Our law firm will take steps to prevent any future losses. In addition, our investments lawyers will try to persuade the financial services firm that you were damaged and to quantify and substantiate your losses. Depending on the Investment firm, attorney and case, a customer could be made whole at this point. If the firm does not to make an acceptable offer the matter can proceed to either the courts or arbitration.
The Hershewe Law Firm Understanding Arbitration in Arkansas
Many customers sign an arbitration agreement when they open an account. If they signed an arbitration agreement the venue to litigate the matter will be through arbitration. The two most popular forums for arbitration are the NYSE and NASD. If an arbitration agreement was not signed, the customer might have the option to litigate in the courts. An arbitration panel hears the majority of cases. Arbitration is a faster and cheaper method to litigate. In arbitration proceedings there are no juries and the rules of evidence do not apply.
Once the course of arbitration is decided upon, a Uniform Submission Agreement and a Statement of Claim will be filed. (The Uniform Submission Agreement is a signed document that submits the dispute to a panel of arbitrators; a Statement of Claim is similar to a legal brief that describes the facts of the dispute). The other party then has a chance to respond in what is called an answer along with their Uniform Submission Agreement and any counter-claims. This is followed by the discovery phase where each side is allowed to obtained documents from the other side in order to help them evaluate and strategize their case. Once the discovery phase has been completed a hearing date is set. The hearing is similar to a trial where each side puts their case in front of the arbitrators. After the hearing is complete the arbitrators will issue a ruling. Only in very limited instances can an appeal be granted. The NYSE and NASD require both a filing fee and a hearing fee when submitting a request to arbitrate. The fees depend on the amount that you are seeking. The NYSE requires a filing fee of $15 to$300 and a hearing fee between $15 and $1500. NASD filing fees cost $25 to $600 with hearing fees from $25 to $1200.00.
Courts and arbitration panels generally look at evidence for the key types of violation for example the transaction turnover rate, which indicates the account's trading volume in relation to its size to determine excessive trading. An unsuitable investment is when the investment professional knows or should have known that the investment is inappropriate for you. The broker must consider your investment objectives, background and your financial situation in recommending an investment. In this case the arbitration panel will examine whether the investment is considered extremely risky and did the investor indicate that they were interested in higher risk investments.
When your legal matter is one of securities law and you are considering arbitration, we suggest you to contact us at The Hershewe Law Firm to discuss your case toll-free at 1-877-382-9734, or through our quick contact web form.
