Securities Arbitration

Effective Securities Arbitration

Securities arbitration has become the most widely used method for resolving disputes between public investors and financial advisors or brokerage firms. Jonathan W. Evans devotes 95% of his practice to securities arbitration. We have litigated hundreds of securities arbitration claims and tried more than 80 cases to a conclusion at FINRA (formerly NASD). Mr. Evans has been practicing law since 1975, is a SuperLawyers honoree awarded 2007–2013 and 2015–2024, and is a member of the Public Investors Advocate Bar Association (PIABA). Peers and Los Angeles magazine have recognized him among the top 5% in securities litigation. Our firm represents public customers only and does not represent brokers or brokerage firms, so our advocacy is fully aligned with investors throughout Los Angeles and across California.

Don’t wait to address your legal needs. Call (818) 760-9880 or get in touch with us to book your consultation with a California securities arbitration attorney.

Your Rights as an Investor in California Securities Disputes

Securities disputes can arise without warning, and knowing your rights before one does makes a difference. We serve investors in Los Angeles and throughout California, and we provide personalized attention and a tailored legal strategy for each client’s situation. Because we represent public customers only, our focus is not divided between investor and industry interests.

Key rights and protections every investor should know:

Right to Transparency: You have the right to receive accurate and timely information about your investments, including fees, risks, and performance.
Right to Fair Treatment: Securities laws require that you be treated fairly and equitably in all transactions.
Right to Compensation: If you’ve suffered losses due to fraud or negligence, you may have the right to seek compensation from those responsible.
Right to Legal Representation: You have the right to consult a qualified attorney who can guide you through the arbitration process and help you pursue recovery.

An informed investor is a better-positioned investor. Contact us for a consultation to learn how we can help you protect your rights.

How the Securities Arbitration Process Works

FINRA Rule 12200 requires arbitration when requested by an investor or when a written arbitration agreement exists. Many brokerage firms include a pre-dispute arbitration agreement in their account-opening paperwork, which binds investors to arbitration for any future disputes. Here is what the process typically involves:

Filing a Claim: The process begins with submitting a statement of claim that details the dispute and the outcomes you’re seeking.
Choosing a Panel: A panel of arbitrators is selected according to the guidelines of the Financial Industry Regulatory Authority (FINRA).
Discovery: Both parties gather evidence relevant to the case, including documents, emails, and witness statements.
Hearing: A formal hearing is held where both sides present their cases, including witness testimony and expert opinions.
Award Decision: The arbitrators deliberate and issue a binding, enforceable award decision.

Visit our frequently asked questions for more about the process. Our team can guide you through each stage and help protect your interests.

Why Securities Arbitration Works for Investors

The arbitration award is final and legally binding. Compared to securities litigation, arbitration can be more efficient and may cost less than a trial. Results may be consistent with those reached in court proceedings.

It’s common practice for brokers to include a pre-dispute arbitration agreement in account-opening contracts, requiring arbitration as the method for resolving any future disputes. Securities mediation can be a useful tool, but unlike arbitration, a mediated settlement isn’t legally binding and doesn’t necessarily end the dispute.

Our securities arbitration attorneys in California are ready to provide personalized legal guidance. Call (818) 760-9880 to secure your consultation.

Investment Arbitration Claim Types for Los Angeles & California Investors

FINRA arbitration is the primary forum for resolving disputes between investors and brokerage firms in California, with hearing locations in Los Angeles, San Francisco, and San Diego. We handle a broad range of investment arbitration claims on behalf of individuals, trusts, IRAs, pension plans, and estates throughout Los Angeles and across California.

Common Claim Types We Handle

Broker Misrepresentation and Omission: Claims arising from a broker’s false statements or failure to disclose material facts about an investment.
Unauthorized Trading: Claims where a broker executes trades in an investor’s account without authorization.
Account Churning: Claims where a broker makes excessive trades primarily to generate commissions or fees at the investor’s expense.
Unsuitable Investments: Claims based on securities recommendations that didn’t match the investor’s risk tolerance, financial situation, or investment objectives.
Overconcentration: Claims arising from a broker concentrating too large a portion of an investor’s portfolio in a single security, sector, or product type.
Failure to Supervise: A recognized FINRA violation in which a brokerage firm fails to adequately oversee its registered representatives’ activities in compliance with securities laws.
Breach of Fiduciary Duty: Claims where a financial advisor put their own interests ahead of the client’s, such as by recommending higher-fee products or maintaining undisclosed conflicts of interest.
Hedge Fund Mismanagement: Claims arising from the improper management of hedge fund assets entrusted to a financial professional.

Our practice also covers disputes involving real estate investment trusts (REITs), tenants-in-common (TICs), unit investment trusts (UITs), structured products, private placements, limited partnerships, and options. If your losses may involve any of these products or claim types, contact our firm to discuss your situation.

California Legal Framework for Securities Arbitration Claims

California investors pursuing FINRA arbitration claims are protected by two overlapping legal frameworks: federal securities law and California’s Corporate Securities Law of 1968, commonly called the Blue Sky laws. How these frameworks interact matters, because each carries its own rules and deadlines.

Under California Corporations Code Section 25401, a seller of securities may be liable for misrepresentation of a material fact without the claimant needing to prove scienter (intent to deceive). This is a broader standard than many federal securities law claims, and it can give California investors additional avenues to pursue recovery.

Filing deadlines under these overlapping frameworks require careful attention:

FINRA Rule 12206: Arbitration claims must generally be filed within six years of the occurrence or event giving rise to the dispute. Claims filed outside this window are subject to an eligibility determination by the arbitration panel.
California Corporations Code Section 25506: State securities law claims must be brought within two years of the claimant’s discovery of the violation, or five years from the date of the underlying transaction, whichever is earlier.
Federal Securities Law Deadlines: Federal claims carry their own statutes of limitations that may differ from both FINRA and California deadlines.

Because multiple overlapping deadlines may apply and the shortest can control, California investors who suspect broker misconduct or investment fraud should consult an attorney promptly to protect their ability to file a claim.

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