McKennon Law Group PC Client Awarded $543,612.62 in Damages in Investment Loss Case - the First of its Kind in Hundreds of Pending Medical Capital Cases

Posted in: News, Securities/FINRA October 28, 2010

In what appears to be the first FINRA arbitration award of its kind in the pending Medical Capital cases, McKennonSchindler LLP client Eric Anderson was awarded $543,612.62 in damages (the full amount of his investment losses) for his massive losses caused by his financial advisor firm’s negligence and breach of fiduciary duties owed to Mr. Anderson.

Mr. Anderson looked forward to relaxing with his family and enjoying a well deserved retirement.  After years of hard work and saving, Mr. Anderson had accumulated a sizable retirement fund which he intended to live off of for the rest of his life.  These funds were entrusted with Cullum & Burks Securities, who managed both his finances and 401(k) retirement accounts.  A …

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Dispute Between Securities' Brokers Not Subject to FINRA Arbitration

Posted in: Case Updates, News, Securities/FINRA January 14, 2010

Several insurers who act as broker-dealers in connection with the sale of “securities” find themselves litigating in Financial Industry Regulatory Authority (“FINRA”) (formerly NASD) arbitrations when disputes arise. Sometimes, they prefer not to litigate in a FINRA forum under its rules. A very recent California Court of Appeals case discussed the types of disputes that are not subject to FINRA arbitration.

In Valentine Capital Asset Management, Inc. v. Agahi, 174 Cal. App. 4th 606 (2009), the court held that a dispute between securities’ brokers was not subject to arbitration pursuant to FINRA rules because the dispute did not relate to the brokers’ activities as members of FINRA-associated firms.

Valentine was the founder and president of Valentine Capital Asset Management, …

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