D&G Law

Securities Arbitration

Photo of attorney Dawn EvansGuin Stokes & Evans attorneys have represented countless investors in NASD/FINRA arbitrations against stock brokers.  Our lawyers have successfully brought claims for “churning” (excessive trading designed to generate commissions), sales of “unsuitable” securities, sales of unregistered securities, unauthorized trading, and other violations of securities laws and regulations.

As members of PIABA (the Public Investors Arbitration Bar Association), we stay on top of current trends so that we provide our clients the best representation possible.

In addition, we represent brokers in disputes with their firms regarding licensing reports, pensions, and non-compete agreements.

Some of the types of claims we bring include the following:

Unsuitable Securities Claims

Stockbrokers are required to make only appropriate or suitable recommendations for their customers based on their investment objectives. “Suitability” is determined by your investment objectives, risk tolerance and other factors. Your stockbroker may violate the suitability rule by failing to diversify your investment portfolio or by investing your portfolio in securities that are too risky for someone in your position.

Investments that often raise suitability concerns include variable annuities, municipal bond arbitrage strategies, “dollar up, dollar down” strategies, lack of diversification, subprime mortgage bonds, and speculative trading strategies (like currency trades, options or margin trading) and stocks (like high-tech stocks, penny stocks, or Chinese stocks).

Breach of Fiduciary Duty

Securities brokers and investment advisors are fiduciaries who owe their customers a duty of loyalty and care. A broker or investment advisor, as an agent of the customer, stands in a special relationship of trust, confidence and responsibility, with special obligations to his customer. For example, a broker or investment advisor must manage accounts in accordance with the interests of the customer.

Failure to Execute Securities Orders

Your broker is allowed “a reasonable time” to execute your securities trades. However, if your broker fails to execute your instructions in a timely manner (or not at all), and the stock you were attempting to sell lost (or gained) significant value during the delay, you might have a claim against your broker for “failure to execute.”

Contact Dawn Stith Evans, Tammy Stokes or David Guin for information regarding our arbitration practice.