Hahn Loeser Partner, Andrew S. May, recently secured a unanimous motion to dismiss in favor of his client in an ongoing arbitration of a FINRA dispute. In this case, May’s client, a registered representative, was involved in an oil & gas offering in 2014 that went sour. None of the customers involved in the oil & gas offering filed complaints against May’s client, but 15 customers filed complaints against the securities firm that had previously employed him.
The employer then named May’s client as a third-party respondent — an unusual occurrence — in the three arbitrations ultimately filed against the securities firm. The securities firm settled all three arbitrations involving clients. That left only the three third-party claims to be arbitrated, pitting the employer against its former registered representative. Instead of conducting three separate arbitrations, the parties agreed to consolidate the arbitrations into one hearing. The three-person arbitration panel ultimately selected was chaired by a seasoned FINRA arbitrator, who also was a practicing attorney. May and his client pressed ahead with oral argument on their motion to dismiss the case against his client claiming it was untimely filed.
Also on his client’s behalf, May filed a counterclaim against the securities firm seeking damages and attorney’s fees for dragging his client into this dispute. The arbitration panel unanimously ruled in favor of May’s motion to dismiss. Now, May is pursuing the counterclaim against the securities firm and seeking to expunge the arbitration action from his client’s license.
