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FINRA Arbitration Panel In Florida Awards More Than $6 Million To Claimants

On May 4th, 2023, a Financial Industry Regulatory Authority (FINRA) arbitration panel rendered a decision awarding more than $6 million to a collection of investors (Case Number: 21-03115). The respondent in the claim—the Oppenheimer & Co., Inc.—faced allegations of breach of fiduciary duty. In this article, our Miami breach of fiduciary duty attorney discusses the decision from the FINRA arbitration panel.

FINRA Arbitration Panel Decision: Investors vs. Oppenheimer & Co., Inc.

 Oppenheimer & Co., Inc. is a brokerage firm based in New York City. Originally entering the securities industry more than six decades ago, the firm is licensed to operate in 52 U.S. states and territories. The broker-dealer faced a FINRA arbitration claim from a group of nearly a dozen different investors. The claimants raised similar causes of action: Investment losses caused by breach of fiduciary duty related to an investment opportunity called Horizon Private Equity III.

According to allegations raised, the investors were told that the private investment fund was a low-risk investment opportunity that would garner safe returns. In reality, significant losses were sustained by the investors. Investors sought compensation for a wide range of damages, including compensation for investments losses, payment of attorneys’ fees, and the awarding of pre judgment interest.

What is a Breach of Fiduciary Duty (Financial Advisor)? 

A breach of fiduciary duty occurs when a financial advisor violates their professional, legal, and ethical obligation to act in the best interests of their clients. Examples of a breach of fiduciary duty can include recommending investments that are not appropriate for a client’s financial situation, failing to disclose conflicts of interest, or engaging in unauthorized trades. To be clear, not all financial advisors owe their clients (investors) a fiduciary duty. However, when a financial advisor does have a fiduciary obligation, it can be held legally liable for damages caused by a breach.

 Award Issued of More than $6 Million to Claimants 

Upon reviewing the evidence raised by the parties, the Orlando, FL based FINRA arbitration panel ruled in favor of the collection of investors. In total, the FINRA arbitration panel held the New York based brokerage firm Oppenheimer & Co., Inc. legally responsible for more than $6.9 million in investment losses. Here is an overall summary of the compensatory damages:

  • Claimant awarded more than $2.6 million
  • Claimant awarded more than $1.7 million;
  • Claimant awarded more than $1.6 million;
  • Claimant awarded nearly $300,000;
  • Claimant awarded nearly $225,000; and
  • Claimant awarded nearly $200,000.

Schedule a Fully Confidential Consultation With a Miami Breach of Fiduciary Duty Lawyer

At ​Carlson & Associates, P.A., our Florida securities fraud lawyer is standing by, ready to help you navigate a FINRA arbitration claim. If you have any questions or concerns about a breach of fiduciary duty by a broker or brokerage firm, we can help. Contact us today to get immediate help with your case. We handle securities fraud cases in Miami, Miami-Dade County, and across all of South Florida.


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