FINRA Statistics Show Investors Win 46% of the Time

The Financial Industry Regulatory Authority (FINRA) has released their latest Dispute Resolution Statistics. The good news for investors is the probability of success is up to 46%, which means investors were awarded damages in 46% of the cases taken to an evidentiary hearing. Over the last six years there has been only one year where there was a better probability of winning and that was 47% in 2010.

So far there have been 12% fewer cases filed than in 2010 at this time, which is likely due to the advancing market, since 2009. However, with the extreme volatility and the economic unknowns we feel that there will be more claims filed going forward. The largest number of claims filed so far in 2011 related to breach of fiduciary duty, negligence, misrepresentation, the failure to supervise, breach of contract, unsuitability and failure to disclose the risks of the investment. Some of the lesser claims related to unauthorized trading, margin calls and churning or excessive trading of a customer account.

If you feel that you have suffered losses in your investment account because of broker negligence or misconduct, please contact our securities law firm for a complimentary, confidential consultation at 1-800-259-9010.

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