Auction Rate Securities Fraud Lawyer

FINRA Creates New Arbitration Process

The Financial Industry Regulatory Authority (FINRA) has recently announced that it has launched a new process for arbitration proceedings used to resolve auction-rate securities fraud claims. The new process allows investors to choose whether they would like their claims heard by a panel of three arbitrators, in which none are connected with a firm that has recently sold auction-rate securities, or if they would like the traditional panel.

The traditional arbitration panel is typically made up of two public arbitrators and one non-public arbitrator, who may or may not have affiliations with a firm that has sold auction-rate securities. The new panel of three arbitrators would still consist of two public arbitrators and one non-public arbitrator; however, none of the three would be affiliated with firms that have sold auction-rate securities.

According to the Financial Industry Regulatory Authority, there have been more than 170 cases involving auction-rate securities fraud to date. This new arbitration process was developed after an agreement was reached with Citigroup. The President of FINRA Dispute Resolution, Linda Fienberg, commented, “In light of the settlement with Citigroup, FINRA believes it is a matter of fairness that all investors with auction rate securities claims…be handled in this manner.”

Investors who have suffered financial hardships due to the misrepresentation of auction-rate securities should contact an auction-rate securities fraud lawyer right away. The arbitration process is unlike any other legal experience and can be very complex. Place your trust in an experienced auction-rate securities fraud lawyer to ensure that you receive the compensation that you deserve.

Call 800-220-9341 today to discuss your case with an auction rate securities attorney.