With an unwavering commitment spanning over two decades, Nelson Ebaugh has been a trusted legal representative for individuals and businesses embroiled in a diverse array of securities disputes. Nelson's securities litigation practice focuses on two key areas: providing assistance to individuals and businesses who have suffered financial losses due to securities and investment fraud, as well as representing individuals and companies facing regulatory action by the SEC, FINRA, or the Texas State Securities Board.Schedule a Consultation
When investors open an account with a brokerage firm, they often sign an agreement that includes a clause requiring any disputes to be resolved through arbitration rather than in court. This means that instead of filing a lawsuit, the investor must bring their claim before a panel of arbitrators who act as neutral decision-makers. Claims against a securities brokerage firm are typically asserted through arbitration due to the prevalence of arbitration agreements in brokerage contracts.
Arbitration offers several advantages for resolving securities disputes. Firstly, it is generally faster and more cost-effective than litigation in court. The arbitration process is designed to be less formal and complex, allowing for a streamlined resolution of the dispute. Additionally, the parties have more control over the process, including the selection of arbitrators and the scheduling of hearings.
Another benefit of arbitration is its confidentiality. Unlike court proceedings, arbitration hearings are typically not open to the public, maintaining the privacy of the parties involved. This can be advantageous for investors who wish to keep their financial matters private or avoid negative publicity.
Furthermore, arbitration decisions are generally final and binding, meaning that they cannot be appealed except in limited circumstances. This provides a degree of certainty and finality to the resolution of the dispute.
It is important to note that while arbitration is the usual forum for asserting claims against brokerage firms, it may not be the exclusive option. In certain situations, investors may have the ability to pursue their claims in court, such as when arbitration agreements are found to be unenforceable or when specific legal exceptions apply.
Overall, arbitration offers investors an efficient and effective means of resolving claims against securities brokerage firms, allowing for a fair and impartial adjudication of disputes outside of the traditional court system.
Investors involved in securities arbitration can make various claims depending on the circumstances of their case. Here are some common claims that investors may assert during securities arbitration:
It's important to note that the specific claims made by investors in securities arbitration will depend on the facts and circumstances of each individual case. The above list provides a general overview of common claims but is not exhaustive.
The Securities and Exchange Commission (SEC) is an independent agency of the United States federal government. Its primary mandate is to protect investors, maintain fair and efficient markets, and facilitate capital formation. The SEC achieves these objectives by enforcing federal securities laws, regulating securities markets, and overseeing various market participants, including companies, brokers, investment advisers, and exchanges.
The SEC has the authority to investigate and take legal action against companies and individuals for violations of securities laws. Some of the legal claims that the SEC may make against the companies and individuals it regulates include:
It's important to note that this is not an exhaustive list, and the specific legal claims pursued by the SEC may vary based on the circumstances and evidence of each case.
When facing claims brought by the Securities and Exchange Commission (SEC), companies and individuals have the opportunity to present various defenses. Here are some general defenses that may be applicable to the claims mentioned: Lack of Intent: The defendant may argue that they did not have the intent to commit fraud, engage in insider trading, market manipulation, or any other prohibited activity. Lack of intent can be a defense when the alleged misconduct was unintentional or resulted from an honest mistake. Lack of Materiality: The defendant can claim that the misrepresentation or omission of facts was not material, meaning it would not have significantly impacted a reasonable investor's decision-making process. The materiality of information is a key element in establishing securities violations.
It's important to note that the availability and success of these defenses may depend on the specific circumstances and evidence presented in each case. Consultation with legal counsel is crucial to determine the most appropriate defenses based on the facts and applicable laws.
FINRA (Financial Industry Regulatory Authority) is a self-regulatory organization that oversees and regulates brokerage firms and registered stockbrokers in the United States. When FINRA identifies misconduct by stockbrokers, it can bring disciplinary actions against them. These actions are based on specific rules and regulations established by FINRA. Here are some common types of claims that FINRA may bring against stockbrokers, along with the associated rules used for disciplinary actions:
These are just a few examples of the types of claims that FINRA can bring against stockbrokers. It's important to note that the specific rules and regulations enforced by FINRA are extensive, and disciplinary actions can vary depending on the facts and circumstances of each case.
When facing claims made by FINRA, stockbrokers may employ various defenses to challenge or mitigate the allegations. Here are some defenses that may be raised:
The Texas State Securities Board (TSSB) is an agency responsible for the regulation and oversight of securities in the state of Texas. Its primary mission is to protect investors and promote the integrity of the securities market in Texas. The TSSB achieves these objectives by enforcing the Texas Securities Act and other applicable laws, as well as by providing education and outreach programs.
The TSSB has the authority to investigate and take legal action against companies and individuals operating in Texas who violate state securities laws. Some of the legal claims that the TSSB may make against these entities and individuals include:
These are some general examples of legal claims that the Texas State Securities Board may make against companies and individuals. The specific claims pursued by the TSSB will depend on the circumstances of each case and the violations of Texas securities laws involved.
When facing claims made by the Texas State Securities Board (TSSB), companies and individuals have the opportunity to raise defenses to mitigate or defend against these claims. Here are some general defenses that may be applicable to the claims mentioned:
It's important to note that the availability and success of these defenses may vary depending on the specific circumstances of each case, the evidence presented, and the applicable laws and regulations. Consulting with legal counsel is crucial to determine the most appropriate defenses based on the facts and circumstances involved.
Nelson Ebaugh has been practicing securities law for over 2 decades, and in that time, he’s developed a reputation for vigorous, effective representation during securities litigation, arbitration, and enforcement proceedings.Schedule A Consultation