Arbitration is generally your final option. If you’ve signed an arbitration clause, you’ve agreed to resolve your dispute through arbitration. And courts generally uphold arbitration decisions and reject any appeals.
However, there are a few instances in which you might pursue a lawsuit. For example, if your dispute is with a broker or firm that declares bankruptcy, you may not be able to collect an award from an arbitration decision. If you intend to recover your money from a bankrupt firm or broker, you can pursue those claims in court. To make your decision, the best thing to do is to consult with an attorney with experience in investor claims.
Class action suits
If a firm you’re doing business with has committed violations that affect all its clients or shareholders,
you may have the chance to pursue remedies through a class action suit. A class action suit is a single lawsuit filed on behalf of a whole class of affected people.
You aren’t required to join a class action: You can always opt out and retain your own lawyer to pursue your individual case.
Regulators do try to make
sure all arbitration awards are paid. The Financial Industry Regulatory Authority (FINRA) has the
power to make sure that brokers who haven’t paid awards don’t
get work at other firms.
