Experienced Securities Arbitration and Litigation Attorneys

The national securities Law Firm of Miller & Milove has successfully represented investors for more than 22 years in Court, Arbitration, and Mediation proceedings. Miller & Milove handles cases and claims ranging from the representation of individual and institutional investors to mass or class actions. Most investor’s legal claims are not resolved absent enforcement of the investor’s legal rights in an appropriate legal forum.

You may have a choice regarding which legal forum best suits your case that is best determined by experienced counsel. You should participate in the decision as to which legal forum is best for you. Advantages and disadvantages of various forums are discussed below. However, you should consult with experienced legal counsel prior to making any decision concerning the legal forum which is most appropriate for your claim.

FINRA ARBITRATION
The majority of individual investor claims are presently being prosecuted in the Financial Industry Regulatory Authority (FINRA) Arbitration forum. Since FINRA (formerly known as the NASD and NYSE) is a self regulated organization whose members are broker-dealers. Federal law requires that FINRA Arbitration Rules be approved by the U.S. Securities and Exchange Commission for the protection of the investing public.

FINRA maintains an extensive website which includes various Investor Resources and permits the public to access some information with respect to securities brokers and the firm’s who employ securities brokers. Typically brokerage firms utilize new account documentation which will require that claims be determined in FINRA arbitration unless the aggrieved investor chooses to participate in a class action in Court.

Absent unusual circumstances, e.g. fraud in obtaining the investors signature on the arbitration agreement or an unconscionable arbitration provision, the Courts will usually require that investors who have signed arbitration agreements arbitrate any individual claims for money damages. As a result, for most investors who are considering enforcing their legal rights to recover money damages against a broker or broker-dealers, their choice will be to proceed in FINRA Arbitration or class action litigation in Court.

Amongst the advantages of FINRA Arbitration over litigation is a relatively streamlined procedural process. Typically, the Arbitration Panel which will decide the merits of the investor’s claims are made up of three (3) arbitrators, one of whom will be appointed Chairperson. The legal rules of evidence are somewhat relaxed, however, FINRA Arbitrators will still be charged with applying the law to the investor’s claims. The Arbitration Panel generally consists of individuals well qualified and experienced in resolving securities issues and who are familiar with the standards of practice in the industry.

Moreover, the FINRA Arbitration proceeding is intended to be an efficient proceeding that will involve much less wear and tear on the investor who typically is not required to give a deposition nor answer numerous written questions, called interrogatories, which are to be expected if a lawsuit is filed in court. The investor who files a FINRA Arbitration is likely to have an evidentiary hearing where the investor tells his story in person to the experienced Arbitration Panel, in contrast - if the investor were to proceed in Court, Court rules expressly authorize extensive and other pre-trial dispositive motions which may limit or eliminate the investor’s legal claims prior to trial. Many times Court procedures are abused by financially powerful firms to make the vindication of rights as costly and painful as possible with the intent to dissuade the determination of investors' rights on the merits.

Absent unusual circumstances, the final decision of the Arbitrators (which is known as an Award) is binding on both sides and may be readily converted into a Judgment in Federal and State Court. Therefore, decisions of the arbitrators are usually the final word with respect to the dispute. Typically, no appeal will be heard on the merits, regardless of who prevails.

PRIVATE ARBITRATION FORUMS
If both sides agree, or if there is an arbitration agreement providing for arbitration in other forums, several additional arbitration forums may be viable options, as the most prominent private arbitration forum is the American Arbitration Association (AAA). However, most brokerage firms do not include AAA or other private arbitration forums at this time.

LAWSUITS IN COURT
Legal actions filed in Court are broadly speaking of two types, actions filed on behalf of individuals and class actions filed on behalf of a group of investors.

INDIVIDUAL COURT ACTION
Individual Court Action is sometimes the most viable means to recover investment losses and may include one ore more investors. Generally, the choice when filing a lawsuit is between Federal and State Court both of which may be viable options. The filing of a lawsuit may not preclude proceeding in an arbitration forum. Indeed, if someone who files a lawsuit and has previously signed an arbitration agreement, the Court may be asked to decide whether the matter is required to be arbitrated.

CLASS ACTION LITIGATION
Class actions filed in Federal or State Court can be an effective tool to obtain relief on behalf of a large number of investors with very similar claims. A significant advantage is the economy of scales which is presented by aggregating the claims. A significant disadvantage is the usual loss of those aspects of the investor’s claims which are unique to that investor and not shared by the other members of the group or class of investors.

Class Actions and class action counsel have been criticized as providing disproportionate benefit to the attorneys and small benefit to individual class members. At times, the criticism has been justified and given the potential of class action litigation to benefit investors, the failure of some attorneys to abide by the rules and place investor interests first is a travesty.

Even if investors are not invited to participate as a Plaintiff class representative in the Class Action, they are often forced to choose between arbitration and having their legal right to recover decided as part of a Class Action. Miller & Milove suggests contacting experienced legal counsel for consultation whenever an investor receives a notice regarding a Class Action.

MEDIATION
Various Mediation forums can facilitate settlement discussions. The effectiveness of mediation is dependant upon the skill of the individual mediator and both sides willingness to attempt to resolve their differences. Generally, mediation is a supplement to the prosecution of investor claims in one of the legal forums described above which may provide the motivation to settle claims in mediation.