Securities Arbitration: Hot Buttons Explored
The Knowledge Group Live Webcast

Securities Arbitration: Hot Buttons Explored

Securities Arbitration: Hot Buttons Explored

Rebecca Beers participated in this Knowledge Group Live Webinar focused on securities arbitration on Monday, May 17 from 12-1:00 p.m. (ET).

The securities arbitration and mediation landscapes have been continuously reshaped with rule changes and regulatory enforcements causing complexity for defendants and plaintiffs alike. Furthermore, with the majority of hearings being conducted virtually, issues on security and confidentiality added a significant challenge in the prosecution of current cases. All affected professionals must keep themselves abreast of the emerging updates in this field of law. Devising timely practices can be effective in mitigating risks.

The speakers discussed emerging issues surrounding securities arbitration and mediation including a discussion of the challenges from the recent rule changes, decisions, and developments and best practices needed to cope with the changing securities law landscape.

Some of the major topics covered included:

  • Legal Overview of Securities Arbitration & Mediation
  • Recent Regulatory Trends and Developments
  • COVID-19 Implications
  • Critical Issues and Notable Court Decisions
  • Effective Case Management and Best Practices
  • What Lies Ahead

Rebecca Beers covered Reg BI and shared the following key takeaways:

  • Implementation and enforcement of Reg BI will likely alter standards of review for some legal claims, such as negligence-based claims and allegations of churning, while the viability (or non-viability) of other claims, such as breach of fiduciary duty and claims for violations of FINRA Rules, will remain the same
  • The implementation and enforcement of Reg BI will more than likely have a significant impact on discovery in light of an increase of discoverable materials which will demonstrate compliance with Reg BI. This increase in breadth of discoverable materials will likely increase the cost of litigation and compliance with discovery rules.

She also shared the following regarding post-award litigation for remote arbitrations:

  • If arbitrators in your remote arbitration are engaging in misconduct, such as sleeping, turning off their cameras, walking away from the camera, and other evidence of ignoring the presentation of evidence, it is important to document these actions on the record and, if possible, through other independent means. Reaching an agreement with opposing counsel to record the video feed of the arbitration before the arbitration begins can be crucial.
  • Seeking vacatur of an arbitration award based upon arbitrator misconduct during a remote arbitration generally requires litigants to prove misconduct that results in a denial of fundamental fairness – that is, arbitrator misconduct that directly causes prejudice to a party. Meeting this standard will likely require specific, undisputed evidence of arbitrator misconduct, which is why documentation is vital.

Listen to the recorded webcast (fees apply)