Securities Arbitration & ADR

Our attorneys are nationally recognized by their clients, peers, adversaries and securities industry regulators for their experience and expertise in securities arbitration at FINRA and other self-regulatory forums, and in mediation and other alternative dispute resolution forums.

In addition to successfully arguing the seminal United States Supreme Court cases that established securities arbitration as the primary forum for investor disputes, Murphy & McGonigle attorneys have decades of experience representing most of the major investment banks and broker-dealers and have arbitrated -- through full hearing -- hundreds of securities arbitrations throughout the United States involving complex sales practice, trading, banking, employment, operational and other matters, with damage claims as large as one billion dollars.

Looking Forward

In light of the increased volatility in the financial markets in the last quarter of 2018, it appeared that securities arbitration filings were poised to increase. But the markets stabilized, and stock prices continued to climb. New case filings with FINRA decreased from January through September 201, falling by 12% compared to the same time period in the prior year. If the markets suffer reversals, new filings will inevitably grow. As investors transfer more of their assets to registered investment advisors (RIAs), we are seeing more claims filed in the AAA, the dispute resolution forum contained in many RIA customer agreements. We expect that trend to continue in 2020. Broker-dealers are also likely to face increased claims resulting from the SEC’s enactment of Regulation Best Interest (BI), which firms must comply with by June 3, 2020. New claims  are likely to arise because of the higher standard Regulation BI imposes on brokers, requiring them to recommend to their customers financial products that are in their customer’ best interests and to identify clearly any potential conflicts of interest and financial incentives the brer-dealer may have in recommending those products.