Auction Rate Securities Victims: Retain a Law Firm for Resolution
Financial Industry Regulatory Authority (FINRA) announced that investors who suffered damages from ARS could opt for a special arbitration procedure or a standard arbitration procedure.
The special arbitration procedure is designed to provide swifter resolution at a reduced cost to customers whose financial harm related to the widespread inability to liquidate auction rate securities. The involved firms are not able to contest their liability. With the special arbitration procedure, investors now have the option of selling their ARS holdings back to the firms under the regulatory settlements and also pursuing consequential damages.
More than 20 firms have agreed to repurchase $61 billion in the investments.
Under the special arbitration procedure, firms will pay all fees related to the arbitration, including filing fees, hearing session fees, and all the fees and expenses of arbitrators.
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To speed the arbitration process under the special procedure, cases claiming consequential damages under $1 million will be decided by a single, chair-qualified public arbitrator. In cases with consequential damage claims of $1 million or more, the parties can, by mutual agreement, expand the panel to include three public arbitrators.
However, investors who want to pursue punitive and other damages should opt for FINRA’s standard arbitration procedure. Disputes will be heard by a typical three-arbitrator panel consisting of two public arbitrators and one non-public arbitrator. The non-public arbitrator must not have worked for a firm that sold ARS, cannot have sold ARS, and cannot have supervised an individual who sold ARS since Jan. 1, 2005.
In the standard forum, ARS damage claims up to $50,000 will be heard by a single public arbitrator. In cases where damages claimed are over $50,000, the panel will consist of two public arbitrators and one non-public arbitrator who have had no association with ARS since Jan. 1, 2005.
What are the benefits of retaining Anapol Schwartz law firm?
Anapol Schwartz is familiar with the arbitration process. Anapol Schwartz is familiar with many of the arbitrators and the process of selection. Anapol Schwartz retains experts to review your financial records to determine what mistakes may have been made in the selection of auction rate securities and whether the risk was appropriate for you, the investor.
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Whether you choose the special arbitration procedure or the standard arbitration procedure -- arbitration claims are complex. Most claimants who file arbitration claims are represented by stock fraud attorneys experienced in the field of securities arbitration who retain the services of expert witnesses to assist in the preparation of damage calculations as well as the proof of the case at the arbitration hearing.
Hiring an ARS attorney is the smart thing to do to maximize your return on investment. It costs you nothing to consult with an Anapol Schwartz lawyer.
