Is there a limitation on the amount of damages that can be awarded in a securities arbitration case?

In Georgia, there is a limitation on the amount of damages that can be awarded in a securities arbitration case. The amount of damages that may be awarded in a securities arbitration case is limited by Georgia laws as well as the rules of the specific arbitration association handling the claim. Under Georgia law, a claimant may be awarded up to the greater of three times their financial loss or $25,000 whichever is greater. However, this does not include punitive or treble damages awarded in rare cases involving particularly egregious conduct. For cases brought through Financial Industry Regulatory Authority (FINRA), the maximum amount of recovery is $2.5 million. This amount includes interest and attorneys’ fees, but does not include punitive damages. The amount of damages an investor is able to recover in a securities arbitration case can be significantly more than if the claim had to be litigated in court due to the lower threshold for recovery. It is important for investors to understand the limitations placed on damages in a securities arbitration case when deciding whether to pursue a claim.

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