Are there any legal defenses that can be used in securities arbitration cases?

Yes, there are legal defenses that can be used in securities arbitration cases in Alabama. One of the most common defenses is the statute of limitations, which is a law stating that a person must file a lawsuit within a certain amount of time or else they will be barred from doing so. This defense applies to securities arbitration cases, which means that if an investor or broker was harmed more than two years ago, then they may be barred from filing a complaint. Another defense is a lack of “standing” which is when a person is not directly involved or affected by a situation. This means that if an investor trades stocks on behalf of a company, but the company is not a party to the dispute, then the investor may not have standing to bring a case for securities arbitration. A third defense is “contributory negligence” which is when an investor or broker is partly responsible for the injury or loss they experienced. For example, if an investor traded on insider information, then they acted recklessly and contributed to their loss. This defense can be used in arbitration cases. Finally, investors and brokers can also use the defense of “unconscionability” which means that a contract is unfair or unreasonable in some way. This includes contracts that are written in very small font size or contain unclear language. If either party can prove that the contract was unconscionable, then a court may void the contract or disclaim it entirely. Overall, there are several legal defenses that can be used in securities arbitration cases in Alabama. It is important to understand these defenses and their legal implications so that investors and brokers can make informed decisions on whether or not to pursue an arbitration case.

Are there any legal defenses that can be used in securities arbitration cases?

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