In Focus
January 31, 2002
nvestors filed 24% more arbitration claims last year to recover their investment losses. That amounts to nearly 7,000 claims filed, alleging breach of fiduciary duty, negligence, failure to supervise, unsuitability and/or misrepresentations.
Of course, the increase in arbitration claims has resulted from investment losses. The two go hand in hand. But brokers simply cannot blame the market as a defense to arbitration claims.
Overall, in 2001 investors received an award 53% of the time. Over the last six years, investors have received an award in their favor 53% to 61% of the time.
— James J. Eccleston
FinancialCounsel.com
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