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Lightfoot has extensive experience with securities arbitration including the representation of broker-dealers as well as individuals. In representing parties in FINRA matters, Lightfoot brings its substantial trial and courtroom experience to bear, combining trial skills with arbitration experience in a way that maximizes effectiveness and distinguishes Lightfoot from attorneys who practice exclusively or principally only in the FINRA arbitration context. Our attorneys have arbitrated numerous matters before FINRA to final award and have also handled many other arbitrations that have resolved at some point prior to final award.

Representative cases include:

  • Wrongful Termination Claim: Lightfoot represented a broker-dealer who was accused of wrongful termination by a former registered representative. The former representative had been a big producer who had averaged well over $500,000/yr. in personal income. The broker-dealer discovered reason to suspect the representative may have altered documents in connection with the sale of a VUL product, and following an investigation terminated the representative and disclosed on the U-5 Notice of Termination that the representative was suspected of fraud and the wrongful taking of property. The former representative brought an arbitration demand, insisted upon his innocence, argued that the Form U-5 had disqualified him from further employment in the industry, and claimed over $10 million in damages. After a three-week hearing, the FINRA Panel denied all of the former representative’s claims.
  • Customer Allegations: Lightfoot represents broker-dealers in customer cases where the customer claims unsuitable product recommendations, unauthorized trading, lack of or inadequate supervision, or other improper activity or handling of the customer’s accounts. We have successfully represented broker-dealers in numerous of these cases achieving either final awards in favor of the broker-dealer or favorable settlements. We are familiar with these type cases and bring typical Lightfoot efficiency as well as effective and creative defenses.
  • Ponzi Scheme Allegations: Lightfoot represented a broker-dealer whose registered representative engaged in selling away through a Ponzi scheme. Multiple customers (and some non-customers) brought arbitrations alleging that the broker-dealer had employed inadequate supervision and monitoring which allowed the registered representative to run his Ponzi scheme undetected. Complicating the defense, during the pendency of the arbitrations the former registered representative was indicted and pled guilty and was sentenced to over seven years in federal prison. Notwithstanding, we were able to achieve favorable settlements with our client paying on average less than one-third of the out-of-pocket losses suffered by the claimants.
  • Represented broker-dealers in internal investigations where potential misconduct is suspected
  • Represented broker-dealers in enforcing non-solicitation covenants that have been breached by registered representatives who have attempted to transfer their “book of business” to a new broker-dealer in contravention of their employment agreements
  • Represented individuals victimized by “rogue” brokers in the handling of the customers’ accounts

Lightfoot has the experience, the bench and the resources to successfully represent clients in all aspects of securities litigation and arbitration.