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July 1st, 2017
securities
ARBITRATION PANEL GRANTS ELIGIBILITY MOTION TO DISMISS AND EXPUNGEMENT IN RECENT CASE

Our firm recently obtained an award from a FINRA panel denying all of Claimant’s claims and finding for Respondents.  The panel also granted our Motion for Expungement.  The claim (Arbitration number 16-03568) was filed in December, 2016.  Claimant alleged claims of breach of fiduciary duty, breach of contract, failure to supervise, violation of the Alabama Securities Act, violation of securities regulatory rules, ongoing fraud, and common law claims of misrepresentation, unjust enrichment and negligence.  The claims were related to Claimant’s purchase of preference plus variable annuities in 2005 and 2007.

Claimant requested $417,000 in compensatory damages, unspecified punitive damages, forum fees, post-judgment interest at the maximum Alabama statutory interest rate and attorneys’ fees.  The panel granted Respondents’ Motion to Dismiss based on eligibility because more than six years had elapsed from the occurrence or event giving rise to Claimant’s claims.  The panel determined that Claimant had purchased and surrendered the annuities more than six (6) years prior to filing the Statement of Claim.  The panel also granted our Motion for Expungement, ordering that the Statement of Claim be expunged from the registered representative’s record because the “claim, allegation or information is false” pursuant to FINRA Rule 2080(b)(1)(C).

The award represents another example of defending stale cases and the willingness of arbitration panels to grant both Motions to Dismiss based on eligibility, as well as Motions for Expungement.  The full award can be found via FINRA’s arbitration award database at http://www.finra.org/sites/default/files/aao_documents/16-03568.pdf.

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