Our firm recently obtained an award from a FINRA panel denying all of Claimant’s claims and finding for Respondents.  The claim (Arbitration number 16-01352) was filed in May, 2016.  Claimant alleged claims of unsuitability, breach of fiduciary duty, breach of contract, failure to supervise, violation of the Alabama Securities Act, violation of securities regulatory rules, and common law claims of misrepresentation, unjust enrichment and negligence.  The claims were related to Claimant’s purchase of alternative investments, including equipment leasing funds, ICON Leasing Fund Twelve, L.P. and ATEL Capital Equipment Fund 14, LLC.

Claimant requested $50,000 in compensatory damages, unspecified punitive damages, forum fees, post-judgment interest at the maximum Alabama statutory interest rate and attorneys’ fees.  The panel denied Claimants’ claims in their entirety, including Claimant’s request for interest, attorneys’ fees and punitive damages.  The panel did grant Claimant’s request for forum fees and awarded Claimant $600 for reimbursement of the filing fee.

The award represents another example of defending stale cases involving the alleged unsuitability of alternative investments. Respondent’s defenses in the case included that Claimant’s claims were barred by FINRA’s Eligibility Rule 12206 and Alabama’s statute of limitations.  We also argued that Claimant executed multiple documents acknowledging the risks and illiquid nature of the investments.