Do victims of securities fraud have the right to a jury trial?
In California, victims of securities fraud do not have the right to a jury trial. Instead, they must file a claim with the Financial Industry Regulatory Authority (FINRA). FINRA is a nonprofit organization that was formed to protect the rights of investors by arbitrating securities disputes. This form of arbitration is known as securities arbitration. Securities arbitration is a process in which a neutral third party, or panel, hears both sides of a dispute and makes a decision about who should prevail. When a securities fraud case is filed with FINRA, the dispute is heard by a panel composed of professionals who specialize in securities law. The panel reviews the evidence presented by both sides and renders a decision. In California, securities fraud cases are decided outside of the court system and, therefore, are not subject to a jury trial. Therefore, if a victim of securities fraud in California believes that they have a valid case, they must file a claim with FINRA and have the matter arbitrated before the panel. The decision made by the FINRA arbitration panel is final and binding on all parties involved.
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