Home -> Law Blog Directory -> Criminal Law Blogs -> SECLaw.com

Criminal Law

: SECLaw.com

More Securities America Arbitrations Stayed in Favor of Class Actions

By Mark H. Astarita, Esq.

Securities arbitration claims against broker-dealers who sold shares of Medical Capital Holdings and Provident Royalties were being filed at a break-neck pace after the SEC charged the issuers with fraud in connection with the offerings. At the same time, class actions were filed across the country against the same brokerage firms.Some of the broker-dealers who sold the securities have been forced to close and others are in danger of closing, as investors in the issuers attempt to argue that the individual brokerage firms are responsible for the fraud of the issuers.That legal theory is difficult to prove, as the investor would have to prove that the brokerage firm was aware of the fraud, or should have been aware of the fraud. Still, tens of millions of dollars in arbitration claims is enough to force firms to re-think their strategies with dealing with the claims...continue to full post

Full post as published by SECLaw.com on March 08, 2011 (boomark / email).