FINRA Arbitration Attorney | Recover Investment Losses

Key Takeaway: FINRA arbitration is the primary mechanism for recovering investment losses from broker misconduct — with most cases resolving in 12–16 months, investors with legal representation recovering significantly more than self-represented investors, and our firm maintaining a 98% success rate.

FINRA Arbitration Attorney — Your Path to Recovering Investment Losses

You’ve discovered that your broker or financial advisor has mismanaged your investments. Maybe they recommended unsuitable products, traded your account excessively, made unauthorized trades, or failed to disclose critical information. You want to recover your losses — but how?

For the vast majority of investors, the answer is FINRA arbitration. When you opened your brokerage account, you almost certainly signed a customer agreement that includes a predispute arbitration clause. This means you agreed to resolve disputes through FINRA arbitration rather than in court. The U.S. Supreme Court has upheld these clauses, so FINRA arbitration is effectively the only path for most investors.

The good news: FINRA arbitration works. It’s faster than litigation, costs less, and is designed to be accessible to individual investors. And investors with experienced legal representation recover significantly more than those who represent themselves.

Haselkorn & Thibaut has over 50 years of experience in FINRA arbitration. Our 98% success rate reflects our deep understanding of the process, the rules, and the strategies that produce results.

Call 1-888-885-7162 for a free consultation, or contact us online to speak with a FINRA arbitration attorney.

What Is FINRA Arbitration?

FINRA arbitration is a dispute resolution process administered by the Financial Industry Regulatory Authority (FINRA). It is the primary mechanism for resolving disputes between investors and their brokers or brokerage firms.

FINRA arbitration is not the same as mediation. In mediation, a neutral third party helps you reach a voluntary agreement. In arbitration, a panel of arbitrators hears evidence and issues a binding decision (award) that is enforceable in court.

Key Facts About FINRA Arbitration

  • FINRA handles approximately 3,000–4,000 arbitration cases per year
  • The average case takes 12–16 months from filing to resolution
  • Most cases settle before reaching a hearing
  • Hearings are held in major cities across the United States
  • Awards are binding and can only be overturned in very limited circumstances
  • Investors with legal representation recover significantly more on average than self-represented investors

For a step-by-step walkthrough of the entire process, see: FINRA Arbitration Step by Step →

How FINRA Arbitration Works

Step 1: Filing the Statement of Claim

Your attorney files a Statement of Claim with FINRA, detailing the facts of your case, the legal theories, and the damages you’re seeking. The brokerage firm is served and must respond within 45 days.

Step 2: Arbitrator Selection

Both parties select arbitrators from a FINRA-provided list. Most cases are heard by a panel of three arbitrators, though smaller claims (under $100,000) may use a single arbitrator. The selection process allows both sides to strike arbitrators for cause and exercise peremptory challenges.

Step 3: Discovery

Both parties exchange documents and information relevant to the dispute. This includes account records, compliance files, emails, and other evidence. FINRA’s discovery rules are designed to be efficient, though disputes about the scope of discovery are common.

Step 4: Mediation (Optional but Common)

FINRA offers mediation as a voluntary step in the arbitration process. Most cases — approximately 70–80% — settle before reaching a hearing, often through mediation. Settlement is usually a good outcome for investors: it provides certainty, avoids the risk of an unfavorable award, and allows you to recover money faster.

Step 5: Hearing

If the case doesn’t settle, a hearing is held before the arbitration panel. Both sides present evidence, call witnesses, and make arguments. Hearings are less formal than court trials but follow similar evidentiary principles. Hearings are typically held in the city closest to where the investor lives.

Step 6: Award

The arbitration panel issues a written award, which is binding and enforceable in court. FINRA awards are final and can only be overturned in very limited circumstances — such as corruption, evident partiality, or the arbitrators exceeding their powers.

For more details on timelines, see: How Long Does FINRA Arbitration Take? →

Types of Claims You Can Bring in FINRA Arbitration

Call 1-888-885-7162 for a free consultation, or contact us online — we can evaluate whether you have a FINRA arbitration claim.

Why You Need a FINRA Arbitration Attorney

FINRA arbitration is designed to be accessible to individual investors, but the reality is that investors with legal representation recover significantly more than those who represent themselves. Here’s why:

The Brokerage Firm Will Have Lawyers

Brokerage firms routinely retain experienced defense lawyers who specialize in FINRA arbitration. They know the rules, the arbitrators, and the strategies for minimizing your recovery. Representing yourself against experienced defense counsel puts you at a severe disadvantage.

Complex Legal and Financial Issues

Investment fraud claims involve complex securities regulations, financial analysis, and legal theories. Proving a suitability violation requires establishing your investment profile, the broker’s obligations, and the causal connection between the violation and your losses. This requires legal expertise and often expert testimony.

Strategic Decisions That Affect Your Recovery

From arbitrator selection to discovery disputes to settlement negotiations, every decision in the FINRA arbitration process can affect your recovery. An experienced attorney makes these decisions strategically to maximize your outcome.

Contingency Fee Alignment

Our firm works on contingency — we only get paid if we recover money for you. This means our interests are perfectly aligned with yours: we want to maximize your recovery because it maximizes our fee. You pay nothing upfront and nothing unless we win.

For more on the costs of FINRA arbitration, see: FINRA Arbitration Costs →

FINRA Arbitration vs. Lawsuit — Which Path?

Most investors don’t have a choice. The predispute arbitration clause in your brokerage agreement means you must arbitrate through FINRA rather than file a lawsuit. The U.S. Supreme Court has consistently upheld these clauses.

However, there are exceptions. If your claim involves a party that is not a FINRA member (such as an independent insurance company or a non-securities entity), you may be able to pursue litigation in court. Some state law claims may also proceed in court alongside or separate from FINRA arbitration.

For a detailed comparison, see: FINRA Arbitration vs. Lawsuit →

What You Can Recover

Through FINRA arbitration, you may recover:

  • Compensatory damages — All losses caused by the broker’s or firm’s misconduct
  • Rescission — Unwinding improper transactions and restoring your account
  • Interest — Compensation for the time your money was improperly invested
  • Attorneys’ fees — May be awarded by the arbitration panel under certain circumstances
  • Punitive damages — Available in cases involving particularly egregious conduct (subject to specific FINRA guidelines)
  • Costs — The panel may award costs associated with the arbitration, including filing fees and hearing session fees

Critical Filing Deadlines

Time is your most important asset in a FINRA arbitration case. Key deadlines include:

  • FINRA’s 6-year eligibility rule — Claims must generally be filed within 6 years of the events giving rise to the dispute
  • State statutes of limitations — May range from 1 to 6 years depending on the state and the type of claim
  • Discovery rule — In some states, the clock starts when you discovered or should have discovered the fraud, not when the fraud occurred
  • SIPC claims — Must typically be filed within 60 days of the trustee’s notice (in Ponzi/broker-dealer failure cases)

The sooner you contact us, the more options you preserve. Call 1-888-885-7162 for a free consultation, or contact us online.

Why Choose Our Firm

  • Over 50 years of experience in FINRA arbitration
  • 98% success rate across all investment fraud cases
  • Free consultation — we evaluate your case at no cost
  • Contingency fee — you pay nothing unless we recover money for you
  • Nationwide representation — we handle FINRA arbitration cases in all 50 states
  • Former Wall Street defense lawyers — we know how brokerage firms defend these cases because we used to defend them
  • FINRA arbitration is all we do — this focus means deep expertise in the rules, the arbitrators, and the strategies that produce results
  • Millions recovered for investors across every category of broker misconduct

Call 1-888-885-7162 for a free consultation, or contact us online — we can tell you whether you have a viable FINRA arbitration claim.

Related Practice Areas

FAQ

Do I have to go through FINRA arbitration, or can I sue in court?
For most investors, FINRA arbitration is the only option. The predispute arbitration clause in your brokerage agreement requires you to arbitrate disputes through FINRA rather than file a lawsuit. The U.S. Supreme Court has upheld these clauses. There are limited exceptions — such as claims against non-FINRA members — but the vast majority of investor claims must go through FINRA arbitration.

How long does FINRA arbitration take?
The average case takes 12–16 months from filing to resolution. Smaller cases (under $100,000) may resolve faster using the simplified arbitration process. Many cases settle within 6–9 months of filing. Complex cases involving multiple parties or extensive discovery may take longer.

How much does FINRA arbitration cost?
FINRA charges filing fees and hearing session fees that vary based on the size of the claim. For a typical claim, filing fees range from $50 to $2,250, and hearing session fees are $500–$1,800 per session. Our firm advances all arbitration costs and recovers them from the brokerage firm as part of any settlement or award. You pay nothing upfront. For details, see FINRA Arbitration Costs →

Can I appeal a FINRA arbitration award?
FINRA arbitration awards are binding and there is no standard appeal process. Awards can only be vacated by a court in very limited circumstances — such as corruption, evident partiality by an arbitrator, the arbitrators exceeding their powers, or the award being procured by fraud. The standard for vacating an award is extremely high, which is why it’s critical to have experienced representation from the start. For more information, see Appealing a FINRA Arbitration Award →

What if the brokerage firm refuses to pay the award?
FINRA has the power to suspend or bar firms and brokers who fail to pay arbitration awards. FINRA Rule 12904 requires firms to pay awards within 30 days. If they don’t, FINRA can suspend their registration, effectively putting them out of business. In practice, most firms pay awards promptly. If they don’t, you can also enforce the award in court like any other judgment.

Do I have to travel for the arbitration hearing?
FINRA holds hearings in major cities across the United States, and the hearing location is typically the city closest to where you live. You may not need to travel at all, or you may need to travel a short distance to the nearest hearing location. In some cases, portions of the hearing may be conducted by video conference. Our attorneys handle the logistics and appear with you at the hearing.

This page is for informational purposes only and does not constitute legal advice. Past results do not guarantee future outcomes.

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