Auction-Rate Securities Lawyers

The Arbitration Process

As an investor, you signed several documents when you first agreed to work with a brokerage firm. These documents almost always contain mandatory arbitration agreements, which require you to undergo the arbitration process if disputes arise between you and the brokerage firm that call for legal action. Signing these contracts and agreements waive your right to a regular trial and require that you participate in the arbitration process, which is run by the Financial Industry Regulatory Authority.

The arbitration process is similar to a trial; however, an arbitration panel takes the place of a judge and a jury. The panel typically consists of three arbitrators, two of which are public arbitrators and one that is a non-public arbitrator. The public arbitrators usually come from a variety of different backgrounds, such as teachers, bankers, accountants, and sales associates.

One major advantage of arbitration is that it is much faster than civil court proceedings. The average length of the process is 12 months, as opposed to the 2 years that it may take to have your case heard in federal court.

While the arbitration process does require you to submit evidence and witnesses to strengthen your case, it does not include appeals, motions, or depositions. Being adequately prepared for arbitration is crucial to your success. Speaking with an auction-rate securities fraud lawyer will ensure that your rights are protected throughout the arbitration process. The arbitration panel will evaluate the arguments of both you and your brokerage firm, and will make a final, binding decision.

Contact an Auction-rate Securities Lawyer

Schedule your initial consultation with an experienced lawyer today by contacting the auction-rate securities fraud lawyers of Williams Kherkher at 800-220-9341.