FINRA Expungements: PIABA’s Press Release Recalls Mark Twain On Statistics

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PIABA – the securities-investor plaintiff’s bar – issued an October 16 press release roundly criticizing industry self-regulatory rules allowing a broker to seek expungement of a customer-claim from her permanent record. PIABA’s release relies on blunt statistics showing that about 60% of arbitration awards containing the word “expungement” granted that relief (with a higher 89-96% rate for awards entered on settlements). The group failed to mention, though, recent reforms requiring arbitrators to make an affirmative finding (after a hearing) that:

- The claim was factually impossible or without merit; or

- The broker wasn’t even involved in the alleged wrong-doing; or

- The claim or allegations were false...

Please see full Alert below for more information.

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Topics:  Arbitration, Arbitration Awards, Expungement, FINRA

Published In: Alternative Dispute Resolution (ADR) Updates, Civil Procedure Updates, Finance & Banking Updates, Securities Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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