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FINRA Securities Arbitration Statistics – February 2011

27 March 2011 4,497 views No Comment

FINRA recently reported its February 2011 arbitration statistics. For the two-month period ended February 28, 2011, 837 claims were filed. This represents a decrease of 9% as compared to the number of cases filed in February 2010 (918).


The number of securities arbitration cases that closed during the first two months of 2011 increased by 16% (957 compared to 828 as of February 28, 2010). However, the average turnaround time for cases that go to an arbitration hearing also increased to 14 months from 11.8 months (16%). Approximately 19% of closed arbitration cases were decided by arbitrators, while 81% were settled (through negotiation or mediation), withdrawn, or closed for other reasons.


The most frequent securities and investment related claims involved in arbitration continue to be breach of fiduciary duty, misrepresentation (fraud), negligence, breach of contract, and suitability. Mutual funds and common stock also remain the most common type of securities involved in arbitration claims.


Investors have also prevailed in a larger percentage of cases decided (by arbitration hearing or on papers submitted by the parties). For the two-month period ended February 28, 2011, 91 cases had been decided and investors prevailed in 46 (51%) of those cases. This is good news for investors as it shows a continued trend in securities arbitration awards being issued in favor of investors. It is also the first time in recent years where the percentage of arbitration claims resolved in favor of investors exceeds 50%. This percentage also does not include cases that settled in favor of the investor, which FINRA notes to be approximately 76% in 2010.


The Kueser Law Firm represents investors in securities arbitration. If you feel that your investments have been mismanaged, please contact a securities fraud attorney to discuss your rights. If you would like to contact The Kueser Law Firm, please visit e-mail or call the firm at (816) 374-5865 to discuss your rights.


This was originally posted on the Securities Arbitration Blawg.

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