On October 21, 2020, a FINRA arbitration panel rendered an Award (FINRA No. 15-01424) denying all claims filed against a Puerto Rico broker-dealer and the broker. In the case, Delgado & Fernández, LLC’s Securities Litigation & Regulation Practice Team
successfully defended Oriental Financial Services Corp. In their Statement of Claim, the Claimants alleged multiple causes of action, including breach of fiduciary duty, negligence, negligent supervision, fraud, breach of contract, breach of contract – third party beneficiary, violation of the Puerto Rico Uniform Securities Act, and violation of federal securities laws.
The case was one of the first FINRA arbitration Final Hearings in the United States held entirely via videoconference using the Zoom platform. The final hearing lasted three weeks and included multiple fact witnesses and securities experts who testified from different locations within the continental United States and Puerto Rico. The panel of arbitrators rendered an Award stating that “Claimant’s claims are denied in their entirety”. This Award serves as a stern warning to individuals who, prompted by stateside attorneys, have decided to file meritless claims against Puerto Rico broker-dealer firms. This is the second case that Delgado & Fernández, LLC has successfully defended on the merits after a Final Hearing in FINRA Arbitration since the Puerto Rico bond market crash.
For years, our attorneys have successfully represented major broker-dealers and individuals in federal and state court cases, as well as in arbitration before the Financial Industry Regulatory Authority (FINRA). Our team of attorneys has successfully defended over a hundred million dollars in claims, representing financial institutions in arbitration and mediation processes regarding customer claims alleging suitability rule violations, misrepresentations, fraud, breach of fiduciary duties, among others.
Our Securities Litigation & Regulation Practice Team
continuously advises our clients on regulatory and business matters.
FINRA Arbitration cases have skyrocketed in terms of quantity and amounts claimed since the Puerto Rico bond market crash in 2013. As of 2019, investors had filed over 3,500 FINRA claims against Puerto Rico broker-dealers and brokers.
If you have any questions about the matters addressed in this News Alert, please contact the Delgado & Fernández, LLC Securities Litigation & Regulation Practice Team,
or your regular Delgado & Fernández, LLC contact.
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