Securities

Broker-Dealer Defense
Represented national broker-dealer in a FINRA arbitration filed by a claimant seeking over $1,000,000 in connection with limited partnerships. Before the hearing, all claims were dismissed pursuant to a motion to dismiss, per FINRA six year eligibility rule.

Represented national broker-dealer in a FINRA arbitration filed by a claimant seeking several hundred thousand dollars in connection with limited partnerships and real estate investment trusts. After three days of arbitration all claims were dismissed and the claimant was ordered to pay $20,000 in costs and fees.

Represented national broker dealer and registered representative in claims against them alleging losses of over $1,500,000. After multi-day arbitration hearing, we obtained a FINRA arbitration award dismissing all claims and awarding $10,000 costs to our clients.

Represented national broker-dealer in a FINRA arbitration filed by a claimant who sought $750,000 in connection with complex options strategy. After arbitration, all claims were dismissed and the claimant was ordered to pay $25,000 in costs and fees.

Represented a securities broker who was sued by a wirehouse firm for non-payment of $94,000 on a promissory note. The case settled with payment of $50,000 to our client by the wirehouse.

We successfully defended an independent broker-dealer in a series of cases involving losses from investments “sold away” from the broker-dealer by a former registered representative. The loss in any one of the cases would have caused the broker-dealer to cease operations.

Represented independent contractor broker-dealer firm in claims in excess of $40,000,000 brought in numerous forums by dozens of claimants. This was a “bet the company” situation for our client. The firm had limited resources and very limited insurance coverage. Through litigating some cases to successful resolution, settling of a class action resolving most claims, and using mediation or other alternative dispute resolution means to resolve others, we were able to protect our client and its shareholders from the ultimate business risk.

Represented California-based independent contractor broker-dealer in jury trial over selling away claims. The jury found for the broker-dealer firm and awarded nothing to the plaintiffs. Represented same firm in bench trial in federal court in the Northern District of California. After the court granted partial summary judgment for the firm, we successfully defended the case at trial. The court found that the firm was not liable for the acts of its former registered representative outside the course and scope of her relationship with the firm.

Represented regional broker-dealer firm in selling away case in California state court. Obtained summary judgment for the firm, despite the fact that the plaintiff was a customer of the firm, on the grounds that the investment that was sold away was not available through the firm, and that the firm had no duty to supervise the undisclosed outside activities of its registered representatives.

Customer
Represented customers in a FINRA arbitration who sought about $250,000 in damages in connection with losses suffered as a result of a churned account and unsuitable investment recommendations. After five days of arbitration the panel awarded our clients about $1,100,000, which included an award of $750,000 in exemplary damages.

Represented claimant seeking $1,900,000 for alleged losses suffered in sub-accounts of a variable annuity. Before the arbitration hearing commenced, respondent agreed to pay our client the full $1,900,000 to settle the claim.

Represented customer seeking damages in a lawsuit for losses suffered when the defendant financial institution failed to liquidate our client’s positions before the markets declined in 2001. Before the hearing commenced, the financial institution agreed to pay our client $2,500,000 to settle the claim.

Represented 30 former telecom employees (including former executives) in securities arbitrations filed against a stock plan administrator for rendering unsuitable and fraudulent advice in connection with management of stock options. We recovered, through settlement and arbitration, in excess of $6,000,000 on behalf of our clients.

Represented group of over 100 investors in farming partnerships in claims of fraud, breach of fiduciary duty, accounting and legal malpractice against promoters of the investment. A bench trial resulted in a multi-million dollar award for the plaintiffs.

Regulatory
Represented two brokers in a year-long FINRA and California Department of Corporations investigation arising out of the sale of mutual funds. After extensive investigation, interviews and on-site record examinations, the investigation concluded with a finding that there was no evidence of regulatory wrongdoing.

We have represented investment advisors in matters initiated by the SEC. In these types of cases, we immediately assess the focus and scope of the investigation to determine if the purported violation exists, and assess the tenor of the investigation to determine if the SEC is focused on just the issues raised in the investigation, or if the investigation or complaint implicates larger enforcement goals. Based on this assessment, we determine if early settlement is appropriate or if the matter must play itself out to hearing. Normally these cases settle, but often advisors must be prepared to defend themselves through hearing if they want to achieve the best results.

Financial Advisory Defense
Represented regional advisory firm in a FINRA arbitration claim filed by a claimant seeking $800,000 in damages. After a seven day hearing, all claims were dismissed.