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Past decision reversed on FINRA arbitration case

On Behalf of | Apr 19, 2022 | FINRA |

An investment client who feels that his or her affairs have been mishandled can file a dispute resolution claim. However, more problems may occur when arbitrators make the wrong decisions. Judges and court officials in Pennsylvania are needed to readdress and modify the inaccurate decisions that were made in old cases.

The reversal of a prior decision

In a Georgia Superior Court, a judge dismissed a previous arbitration claim involving a Wells Fargo client who sued the bank and obtained services from the Financial Industry Regulatory Authority (FINRA) in 2019.

The judge decided to undo the result of the lawsuit made in her favor. The reason is because FINRA used manipulative tactics to perform the arbitration procedure. FINRA oversees hundreds of claims through its arbitration unit. They use a computer-generated list to select arbitration professionals and obtain neutral agreements between both parties.

Uncovering bias in arbitration cases

The judge decided to dismiss the decision in favor of Wells Fargo Advisors. The FINRA system has received criticisms for the unfair decisions of its panels of arbitrators who make final decisions against investors and determine the amounts of compensation. The ruling claims that FINRA has not remained a neutral forum.

A spokesperson for FINRA claims that the organization sets rules for admitting arbitrators and follows fair rules that benefit all parties. A representative for Wells Fargo Advisors has claimed to file an appeal against the judge’s decision.

The necessary intervention of courts in old cases

Judges can decide to reverse decisions on court cases that happened two or more years ago. They often criticize the actions of nationwide organizations like FINRA. FINRA operates a large forum that provides arbitration and mediation services to claimants. Recently, a few court cases have focused on the fairness of every step of the arbitration system.


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