What types of sanctions can be imposed by a securities arbitration panel?
A securities arbitration panel in Texas can impose several types of sanctions when determining a ruling in a case. The most common type of sanctions is an award of damages to a wronged party. This includes compensatory damages to make up for any losses as a result of the legal dispute. The panel may also order punitive damages, which are intended to punish wrongdoers and deter future misconduct. In addition, a securities arbitration panel can issue an injunction or cease-and-desist order. An injunction is a court order that requires a company or person to stop violating the law, and a cease-and-desist order requires that a practice be stopped. The panel can also order specific performance, which requires a certain action or behavior to occur instead of providing compensation. For instance, it may order a company to purchase shares of stock. Finally, the arbitration panel may impose disgorgement as a sanction. Disgorgement requires a wrongdoer to return the profits made from the illegal activity. This is done to prevent unjust enrichment and deter future wrongdoing. Although the types of sanctions available to a securities arbitration panel in Texas may vary depending on the case, the types outlined above are the most common. The sanctions issued are intended to deter future misconduct and ensure that those harmed by wrongdoing are adequately compensated.
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