FINRA recently reported its September 2009 arbitration statistics. As of September 30, 2009, 5,545 claims were filed, compared to only 3,471 as of September 30, 2008, an increase of 60%. FINRA also reported that 3,196 cases were closed through September and that the average turnaround time for cases that go to an arbitration hearing has declined by 9% (14.5 months from 16.0 months).
The most frequent claims/controversies involved continue to be breach of fiduciary duty, misrepresentation/fraud, negligence, and breach of contract. Mutual funds and common stock also remain the most common type of securities involved in arbitration claims.
Investors have also prevailed in a larger percentage of cases decided (by hearing or on the papers). As of September 30, 2009, 444 cases had been decided and investors prevailed in 203 (46%) of those cases. This represents a 1% increase over last month and continues to demonstrate that arbitration results are moving more in favor of investors/Claimants. Given that 3,196 cases have closed as of September 30, 2009, these statistics also demonstrate that a large number of arbitration claims are settled.
The Kueser Law Firm represents investors in securities arbitration. If you feel that your investments have been mismanaged, please contact our firm to discuss your rights.
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US News & World Report published an article today written by Rob Silverblatt. The article was entitled “Could Arbitration Help You Recover Investment Losses.” The author interviewed several attorneys who practice in the area (unfortunately, the author of this blog was not one of them) and discussed patterns and trends in securities arbitration filings. The article also noted the fact that concerns related to the arbitration process have caused politicians to push the Arbitration Fairness Act (AFA) through Congress. The AFA would nullify mandatory arbitration provisions in contracts between investment firms (as well as other companies) and their customers.
The timing of this article is hardly coincidental. Over the past few years, consumers and investors have fallen victim to a scourge of Wall Street initiated hardship. Unlike the dotcom collapse that occurred earlier in the decade, losses have occurred across the board, including investments marketed as “conservative” or “cash equivalents.” From auction rate securities, collateralized mortgage obligations, and unprecedented losses in bond funds, investors have had few places to turn. In addition, as the stock market plunged from late 2007 to early 2009, investors who were in stocks suffered substantial losses. Those who were sold inverse and leveraged ETFs lost even more.
The Kueser Law Firm represents investors in securities arbitration. If you are concerned that your investments have been mismanaged, contact us to learn more about your rights.
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