According to a recent announcement by the Financial Industry Regulatory Authority (FINRA), the regulator has launched a new pilot program. Securities arbitration lawyers say this program is designed specifically for large arbitration cases, or those cases involving claims of $10 million or more.
Under the terms of the program, parties are able to customize the administrative process in order to better suit the special needs of bigger cases. Furthermore, it allows certain FINRA arbitration rules to be bypassed. The program is open to all cases that meet the monetary requirement. Participation is strictly voluntary. In order to take advantage of the program, however, parties must be represented by counsel, such as an investment fraud attorney, and must pay for any and all additional costs associated with the program.
“In response to the increasing number of very large cases, we wanted to introduce a more formal approach to give parties greater flexibility and more control over the administration of their case,” says FINRA Dispute Resolution President Linda Fienberg.
Parties of current cases involving claims in excess of $10 million will receive a letter from FINRA in order to solicit participation in the program. Parties who receive this letter are encouraged to discuss this new option with their investment fraud attorneys.
The program allows parties to customize the arbitration process by allowing for the following options:
- Parties will be able to hire non-FINRA arbitrators.
- Parties will have additional control over the qualifications of arbitrators and method of arbitrator appointment.
- Parties will, prior to the hearing, be able to develop their own information exchange procedures.
- Parties will have more choices when selecting a facility.
- Parties will have a greater variety of discovery options, including interrogatories and depositions.
If you have a claim with damages of $10 million or more, you have the option to take advantage of this program. For more information, contact a securities arbitration lawyer at The Law Office of Christopher J. Gray at (866) 966-9598 for a no-cost, confidential consultation.