Stock Fraud Arbitration Process
- Filing Complaint - Once we have determined that we will pursue your case, a Statement of Claim would be drafted. The statement of claim will contain the basic facts about your case and would be filed with the Financial Industry Regulatory Authority, or FINRA. At this time a monetary demand would be put to the broker dealer and broker who serviced your account, as well as a presumption of liability.
- Choosing Arbitrators - When your Statement of Claim has been filed, both parties rank a list of arbitrators set forth by FINRA. These arbitrators will be the ones who will decide your case. During this process, we will review prior rewards and resumes from the list of arbitrators that were randomly selected by FINRA. Like choosing a jury, both sides will have the opportunity to reject certain arbitrators. When we decide which ones we like, a list is sent to FINRA representing our final selection.
- Discovery - Before any case goes to arbitration, both sides are required to provide documents that will be used to help defend and prosecute the case. There are deadlines set forth by the arbitrators on when these documents must be turned over to the parties. As a claimant, you will be required to produce your tax returns, account statements and confirmations. Additionally, you will have to give any correspondence between you and the broker dealer, as well as with the broker who serviced your account. We will help and guide you through this process.
- Mediation / Settlement - Through out the entire discovery process, both sides would make an effort to resolve the case without having to go to arbitration. If both sides are close to settling but cannot agree on a specific amount, often the case would be heard by a mediator. This process is much less costly than arbitration. The mediator’s job is to hear both sides and determine the strengths and weaknesses of the case. He/she will do their best to have both sides compromise and settle the case.
- Arbitration - If both sides cannot settle, then the case goes to arbitration. Arbitration usually consist of three panel members. An arbitration hearing is very similar to a trial. The hearing will be located where you livid during the time the dispute took place. There is no specific time period on how long a hearing will last. Usually they last three to five days but can go as long a two to three weeks. Within thirty days of the conclusion of the hearing, the panel will rule on the case. After the ruling, the parties have 30 days to comply with the award.