What Damages Can Be Awarded in FINRA Arbitration Cases?

Attorneys working to obtain the full value for each type of compensable loss

At The Frankowski Firm, our goal is not just to win a client’s case, but to get the maximum financial award that we can for the client. The economic loss of the investor must be evaluated. We understand most of our clients have lost a substantial portion, perhaps even all, of their life savings. When necessary, our firm works with expert witnesses to quantify the exact amount of the loss. The most common measures of damages include:

  • Trading loss. This loss is typically the amount of the investment at the time the investment was made, minus the value of the investment as of the time the claim for damages was filed.
  • Dividends and interest. Often the broker will claim that the amount of damages should be offset by any dividends or interest. Our firm takes the position that this is not an appropriate deduction because the broker should not benefit from misconduct, and the dividends/interest were an expected part of the investment.
  • Well-managed account losses. This is a way to calculate the damages by figuring how much the investment would have earned (or how much the losses would have been minimized) if the account had been handled properly. Market indices, such as Dow Jones Industrial Average and S&P 500, are used to place a precise figure on this type of analysis.
  • Rescission. In some cases, an appropriate remedy is to rescind the contract. Ideally, rescission would put the investor back into the position he or she was in prior to investing with the broker.
  • Disgorgement. This is an equitable remedy that makes the offender return any profits and commissions improperly obtained. Disgorgement is often used in churning cases to force the broker to return the amount of the commissions wrongly obtained.
  • Punitive damages. This type of award is meant to punish the wrongdoer and deter future misconduct. Punitive damages may be awarded when the misconduct is intentional or malicious.
  • Legal fees. Some state securities statutes allow the claimant to recover the claimant’s legal fees from the broker if the claim is successful.
  • Litigation costs. Each securities arbitration case includes expenses for filing fees, copy costs, the costs of the hearing, and other related expenses. Winning parties usually ask to be reimbursed for any litigation costs advanced.

Fight for the maximum amount of damages for securities fraud or negligence that the law allows

Arbitrators need proof that an investor was financially damaged by stockbroker misconduct, and they need evidence to confirm the exact amount of the loss. The legal team at The Frankowski Firm analyzes each element of damages and will present the panel with the most accurate measure of damages so that you may achieve the justice you deserve. To get professional advice if investment error or fraud caused harm, call at 888-741-7503 or complete the contact form to schedule an appointment.

Free Case Evaluation

Call 888-741-7503 now or fill out the form above
to receive a free confidential consultation.
The recoveries, verdicts, favorable outcomes, and testimonials described on this site are not an indication of future results. Every case is different, and regardless of what friends, family, or other individuals may say about what a case is worth, each case must be evaluated on its own facts and circumstances as they apply to the law. The valuation of a case depends on the facts, the damages, the jurisdiction, the venue, the witnesses, the parties, and the testimony, among other factors. No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers.

Disclaimer: Mr. Frankowski is licensed in Alabama and Florida. He is not licensed in any other state, including Nevada and California. Mr. Frankowski has represented investors from all over the country in securities cases including: Alabama, California, Colorado, Florida, Georgia, Illinois, Kentucky, Louisiana, Mississippi, Nevada, New Mexico, New York, North Carolina, Tennessee, Texas.
TEXT US888.741.7503