Jessica E. Levine and Alexander Truitt of Winget, Spadafora & Schwartzberg LLP’s New York office won a Motion to Dismiss pursuant to FINRA Rule 12206 — FINRA’s Six-Year Eligibility Rule. The investor filed a Statement of Claim seeking over $400,000 in alleged investment losses purportedly relating to two private placements that she purchased through the brokerage firm more than six years before commencing her arbitration. The investments at issue were two private placements: one that is currently in bankruptcy and the other that is awaiting the appointment of a Receiver.
The Panel unanimously agreed with WSS’s argument that the claims against its client should be dismissed because the investments were purchased more than six years before Claimant commenced the arbitration and granted the Motion to Dismiss.
A copy of the award may be found here.
Winget, Spadafora & Schwartzberg, LLP and its Securities Litigation and Arbitration 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 award or the defense of due diligence, suitability or misrepresentation or omission claims, please contact a member of our firm’s Securities Litigation and Arbitration practice group.
