What are the benefits of settling securities arbitration claims?

Securities arbitration claims are disputes between investors and their financial advisors or brokerage firms. When the parties are unable to resolve the dispute through direct negotiations, they can turn to securities arbitration. When this happens, a financial industry arbitration panel will review the evidence and make a decision on the dispute. One of the primary benefits of settling a securities arbitration claim is that it allows the parties to resolve the dispute without the time and expense of a trial. Securities arbitration is generally faster and less expensive than a trial, and it can be completed in a fraction of the time. In addition, the outcome of a settlement is usually binding, meaning that neither party can appeal the decision. This eliminates the uncertainty of having the decision overturned on appeal. The settlement process also allows the parties to come to an agreement that is tailored to their individual needs. This flexibility is beneficial, as it allows the parties to come to a mutually agreeable resolution without having to be bound by a rigid court order or decision. Finally, securities arbitration settlements can often create better outcomes than traditional court proceedings. This is because arbitration panels generally have more expertise and knowledge about the financial industry than a judge or jury might have. Because of this, the arbitration panel can create a more equitable outcome for both parties.

Related FAQs

What are the benefits of settling securities arbitration claims?

Related FAQs

Related Blog Posts