What are the timelines for filing a securities arbitration claim?

In California, the timeline for filing a securities arbitration claim is generally outlined in the California Code of Civil Procedure Section 1281.2. If the dispute involves the sale or purchase of a security, the claim must be brought within four years of the transaction date. If the claim involves the misrepresentation of a security, the claim must be brought within three years of when the misrepresentation was or should have been discovered but no later than four years from the transaction date. The claimant must also file a Statement of Claim with the American Arbitration Association (AAA), which is the organization responsible for administering securities arbitration in California. The Statement of Claim must be filed within six months of when the dispute arose, or the claim may be barred. The statement must include the details of the dispute, including the amount of damages sought, and must be filed with both the AAA and the respondent. After the Statement of Claim is filed, the respondent has the right to file a Response within 30 days. If the respondent does not respond within 30 days, the claimant may request a Default Award from the panel. The arbitration process then progresses with hearings, discovery, and other pre-trial procedures that may take several months or longer. An award is generally rendered three months after the hearing.

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