Investors Subject to “Arbitrary” Decisions in Stockbroker Fraud Arbitrations
Date: March 18, 2011
Investors are often forced to go to arbitration with their financial firm because of an arbitration clause in their agreement. In recent claims against Regions Morgan Keegan, a large group of investors were split into smaller groups. The first group of investors received $9.2 million while the second group lost and was ordered to pay legal fees.
While FINRA arbitration has its positives, “there are situations in which stockbroker arbitration rulings are contradictory.” As the third group of investors prepare for arbitration, the benefits of arbitration are being questioned.