FINRA recently reported its January 2010 arbitration statistics. For the month ended January 31, 2010, 456 claims had been filed. This represents a decrease of 14% as compared to the number of cases filed in January 2009 (528). The average turnaround time for cases that have resulted in an arbitration hearing (i.e., cases that did not settle prior to the hearing) has declined by 11% (11.6 months from 13.0 months).
In addition, FINRA has also noted a significant increase in the number of cases in mediation. Through January 31, 2010, parties in 75 cases had agreed to mediation, which is 92% greater than the number of cases (39) under a mediation agreement in through January 2009. Cases in mediation were closed in approximately 121 days.
The most frequent securities and investment claims/controversies involved in arbitration continue to be breach of fiduciary duty, misrepresentation/fraud, negligence, failure to supervise, oission of facts, and breach of contract. Mutual funds and common stock also remain the most common type of securities involved in arbitration claims.
During the month of January, 350 cases closed. Of those, 52 were decided by arbitrators (39 closed as the result of an arbitration hearing and 13 closed after an arbitrator reviewed documents submitted by the parties) and the remainder were closed as the result of settlement, withdrawn claims, and “other reasons.” Investors also won fewer cases, as a percentage of cases decided by arbitrators, than in the previous year as only 41% of investors who were seeking monetary damages were awarded any compensation. This is down from 45% in 2009.
The Kueser Law Firm represents investors in securities arbitration. If you feel that your investments have been mismanaged, please contact our firm to discuss your rights. This entry was originally posted on the firm’s Securities Arbitration Blawg.