Are there any special rules for bringing class action claims in securities arbitration?

Yes, there are certain rules that apply when bringing a class action claim in securities arbitration in Washington. A class-action is a type of lawsuit in which a single plaintiff, or group of plaintiffs, file a claim on behalf of a larger group of people who have all suffered a similar harm. In Washington, individuals and organizations filing class-action claims for securities-related disputes must meet all applicable laws and regulations, in addition to following the procedures established by the Financial Industry Regulatory Authority (FINRA), the primary organization responsible for governing and resolving disputes in the securities market. Under FINRA rules, any class action must contain three criteria in order to be accepted for arbitration: (1) the claims must be similar in nature and result from the same set of facts, (2) all parties must have consented to being part of the class, and (3) the class representative must be able to adequately represent all other members of the class. Additionally, all class participants must be given notice of their right to opt-out of the settlement, allowing them to pursue their own individual claims if they feel it is in their best interest. In addition, FINRA also requires that a class-action must be approved by the arbitration panel prior to it being heard in court. This is to ensure that the claims are properly presented and meet all the necessary requirements. Without this approval, the class-action claim cannot be heard by the court.

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