What sanctions may be imposed in a securities arbitration case?

In Texas, sanctions in securities arbitration cases may be imposed when a party to the dispute has acted in bad faith or committed fraud. Sanctions may be monetary or non-monetary. Monetary sanctions can include attorney’s fees, court costs, and other costs associated with litigation such as expert witness fees. Non-monetary sanctions can include an order to do or refrain from doing certain acts, an order to comply with the rules of the arbitration, or an order for reimbursement of costs, such as travel expenses. The investor’s protection group FINRA may also impose sanctions. These can include monetary fines, barment or suspension from working in the securities industry, or a public reprimand. FINRA can also enter into a consent order with the respondent in which they agree to accept the sanctions in exchange for not being held liable if the panel found them liable, or the respondent does not deny the allegations. If a party to the dispute has failed to comply with a court order, parties may be held in contempt and sanctions imposed. Sanctions may include monetary fines, attorney’s fees, or jail time. The rules of arbitration may also provide for sanctions. These can include excluding the testimony of certain witnesses, striking pleadings or orders, or stay proceedings until the sanctions have been satisfied. Overall, the types of sanctions that may be imposed in a securities arbitration case are numerous and depend on the specific facts of the situation. It is important that parties to the dispute are aware of the rules and potential sanctions so they can make informed decisions about their case.

What sanctions may be imposed in a securities arbitration case?

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