Do victims of securities fraud have the right to a jury trial?
In Texas, victims of securities fraud generally do not have the right to a jury trial. According to state law, cases of securities fraud in Texas must be brought before a board of arbitration. This board is usually composed of three members: one chosen by the claimant, one chosen by the respondent, and a third member mutually agreed upon by both parties. If the parties are unable to agree upon a third member, then the presiding judge of the court will appoint the third member. Securities fraud cases are typically heard in front of this board of arbitration and not a traditional jury trial. The reason that juries are not typically used for securities fraud cases in Texas is because arbitration provides a quicker and less expensive way of resolving legal disputes regarding securities fraud. By opting for arbitration, the time and costs associated with a traditional jury trial are eliminated. Additionally, arbitration decisions are usually final, meaning that claimants are not allowed to appeal the arbitration board’s decision if they are unhappy with the outcome of their case. Overall, victims of securities fraud in Texas do not have the right to a jury trial. Instead, they must pursue their claims through arbitration before a board of arbitration, who will ultimately decide the outcome of their case.
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