Myths About Securities Arbitration
Myth: Arbitration is not as serious as the trial process.
Arbitration proceedings often involve millions of dollars, and awards issued by arbitrators are final and binding. Arbitration proceedings are no less important than the trial process, and, with attorneys who have experience with FINRA arbitration, investors often see positive results.
Myth: Arbitration is biased against individual investors.
The securities arbitration process is widely thought to be a fair process for investors and has served tens of thousands of investors over the years. FINRA reports that “in 2013, approximately 77 percent of customer claimant cases resulted, through settlements or awards, in monetary or non-monetary recovery for the investor.” To address some concerns about fairness in arbitration panels, FINRA now allows all-public panels at investors’ choosing. These all-public panels are composed entirely of arbitrators with no ties to the securities industry, further leveling the playing field for investors and instilling greater confidence in the fairness of the process.
Myth: Arbitration hearings are open to the public.
Arbitration proceedings are private. Documents, including the statement of claim, remain confidential even after the process is over, with the exception of the award, which is available only on FINRA’s website.
Myth: Arbitration is an expensive and lengthy process.
A benefit of pursuing arbitration is that the process is usually shorter and less costly than litigation. While trials may drag on for multiple years, arbitration usually takes about a year to a year and one-half from start to finish, and the costs are generally much less than litigation.
Myth: In arbitration, there is no need for an investor to be represented by legal counsel.
In many securities arbitrations, investors have lost most or all of their life savings, and the stakes are very high. With such large losses, taking a chance at self-representation or hiring inexperienced legal counsel is unwise. Hiring an attorney with extensive experience with securities arbitration is an investor’s best opportunity for recovering losses.
At Goodman & Nekvasil our contingent fee structure allows investors to make sound decisions without an initial financial outlay, creating a relationship in which both client and attorney are motivated to seek a full recovery. This situation is the best for investors after they have suffered losses that decrease the funds available to hire legal representation. We encourage potential clients to contact us to learn more.
Experience & Knowledge You Can Trust
When choosing a securities attorney, longstanding history and experience in the field is as important as being ahead of the curve. Goodman & Nekvasil is firmly grounded in both worlds, with our promise of good faith and trust built-in to how we do business. If you are interested in hiring Goodman & Nekvasil for your securities law claim, contact the firm today for a free consultation.
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