What types of damages can be awarded in a securities arbitration case?

Damages can be awarded in a securities arbitration case to compensate an investor who has been wronged in some way. Generally, damages can come in two forms; compensatory damages and punitive damages. Compensatory damages are awarded to an investor to replace any money they may have lost due to misconduct by another party. They are intended to restore an investor’s financial position to what it would have been had the mistake not occurred. Punitive damages are damages awarded to punish the wrongdoer and to deter similar future misconduct. In North Carolina, the most common type of compensatory damages awarded in securities arbitration cases is compensatory damages for lost profits. The investor is awarded the amount that they would have made had it not been for the wrongdoing of another party. Another type of compensatory damages is restitution, which may be awarded when money or property has been illegally obtained by one party. Restitution is an attempt to return the investor to the financial position they would have been in prior to the misconduct. In addition to compensatory damages, punitive damages may be awarded in securities arbitration cases in North Carolina. Punitive damages are intended to punish the wrongdoer and deter similar future misconduct, and are typically higher than compensatory damages. The amount of punitive damages awarded is based on the wrongdoer’s conduct. The amount of punitive damages awarded is also a factor in determining any further sanctions imposed on the wrongdoer.

What types of damages can be awarded in a securities arbitration case?

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