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What is Securities Arbitration?

Aug 25, 2013   |   Share This Article: Share this with Facebook Share this with Twitter Share this with Google Plus

When two parties cannot agree, they may seek to have a court settle their disputes. This type of dispute resolution is called litigation. In some situations, instead of going to court, parties seek alternate methods to resolve their disputes. One of these methods is called arbitration. In arbitration, knowledgeable arbitrators are hired to settle disputes outside of the courts in an impartial manner.

People frequently use arbitration when there are disagreements involving investors and stockbrokers. A successful arbitration is best achieved by seeking representation from ADR attorneys in Tucson who have years of experience handling these types of issues.

Often, broker agreements require investors to go to arbitration instead of court in the event of an inability to settle a dispute between the brokerage firm and stockholder. Using arbitration can avoid lengthy and costly litigation. Once an arbitrator issues an award, both sides are bound by the ruling. Appealing an arbitration decision is difficult and can only occur in limited situations.

After the economic downtown and loss of value of many stocks, there was an increase in securities arbitrations. Securities arbitrations often involve one of the following issues:

  • Misconduct by a stockbroker
  • Claims based on bad advice
  • Misrepresentation by a stockbroker or brokerage house
  • “Churning” of the account, or excessive trading done to garner the broker a commission
  • Fraudulent investing
  • Unauthorized trading
  • Failure to abide by instructions of a stockholder

An experienced attorney at Heurlin Sherlock can examine your situation and help determine if securities arbitration is right for you.


Posted In Blog, Securities Arbitration