Securities Arbitration: Who Shot J.R. Down?

Block & Landsman by Block & Landsman

The need for the Financial Industry Regulatory Authority ("FINRA"), which oversees securities arbitration hearings, to revise its arbitrator disclosure procedures is under a spotlight because of a FINRA arbitration case brought by actor Larry Hagman, star of the 1980s program "Dallas," against Citigroup. On October 6, 2010, Hagman won an $11 million arbitration case against Citigroup Global Markets for the actions of a Smith Barney broker. Hagman and his wife claimed that the broker breached her fiduciary duty by creating an unsuitable portf...Read More

Victory for Investors – Securities Arbitration Now Offers All-Public Arbitrators

Block & Landsman by Block & Landsman

In a long-sought victory for investors, the Securities and Exchange Commission ("SEC") has approved a proposal by the Financial Industry Regulatory Authority ("FINRA") that arbitration panels, which decide investor claims of broker misconduct, no longer are required to include an arbitrator who is a member of the financial industry. For the first time since the U.S. Supreme Court allowed brokerage firms to require investors to arbitrate disputes, investors will have a choice of selecting an all-public arbitration panel. For years, investors ...Read More