Benjamin J. Biard, Esq. and Zachary S. Knoblock, Esq. of Winget, Spadafora & Schwartzberg, LLP’s Florida office received a full defense award in favor of the firm’s brokerage firm client related to ARC Hospitality Investors Trust (HIT). The customer in the proceeding alleged that the brokerage firm failed to conduct a proper due diligence review of ARC Hospitality Investors Trust arguing that alleged issues with the offering would have stopped a reasonable firm from recommending the investment to any investor. Further, the customer alleged that the investment was not suitable given his investment objective and risk tolerance. The customer also asserted that he should be permitted to focus solely on the investment he deemed unsuitable, and ignore the other investments that were profitable for the customer. After eight days of arbitration hearings via Zoom, the all-public arbitration panel dismissed all claims in their entirety. See attached Award.
Winget, Spadafora & Schwartzberg, LLP and its Securities Practice Group are constantly focused on identifying new and insightful ways to defend claims in the securities industry to ensure our clients are getting the most cutting edge defense strategies available. Should you have any questions regarding the attached Award or the defense of HIT claims, please contact a member of our firm’s Securities Practice Group.
The Award can be found here.