Christina M. Rieker, Esq. of Winget, Spadafora & Schwartzberg, LLP’s New York office received a directed verdict in favor of the firm’s brokerage firm client related to claims of misrepresentation and omission of accurate pricing of securities on the brokerage firm’s online platform. The customer in the proceeding alleged that the brokerage firm intentionally and/or negligently omitted accurate and up to date pricing of securities from their platform and statements to the detriment of its customers. Further, the customer alleged that the brokerage firm improperly liquidated securities in their account after failing to meet margin calls. After the claimant closed his case-in-chief during the final arbitration hearing held via Zoom, the arbitration panel granted the brokerage firm’s oral motion for a directed verdict and dismissed all claims based on the ‘complete lack of evidence to support Claimant’s claims.’ The Panel further ruled that the account agreement between the parties provided for an award of attorney’s fees to the broker-dealer in this scenario, and upon review of the broker-dealer’s post-hearing application, awarded the broker-dealer all attorney’s fees and forum fees incurred in defending the matter.
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 Awards or the defense of negligence, misrepresentation or omission claims, please contact a member of our firm’s Securities Practice Group.
