Broker-Dealer Litigation and Arbitration

Shumaker lawyers are experienced in defending and prosecuting broker-dealers, registered representatives, investors, and corporate officer/directors under the complex and changing labyrinth of federal and state securities laws and regulations.  We provide full representation in all such matters before state and federal courts, federal securities regulatory agencies, the Financial Industry Regulatory Authority (FINRA), securities exchanges, and other self-regulatory organizations (SROs).  By way of example, we help broker-dealers that face investor lawsuits alleging misrepresentation or breach of fiduciary duty involving structured financial products that were affected by the global financial crisis, as well as advocate for registered representatives whose compensation plans were jeopardized by the investment firm consolidation that accompanied the crisis.

What Makes Us Different

We have significant nationwide trial and arbitration experience handling a wide range of financial industry claims.  Clients rely on our expertise and knowledge of the securities industry.  We speak the language of broker-dealers and registered representatives – whether their concerns are about proper safeguards in a securities offering or resolving an employment dispute in arbitration.  We understand what is at stake in such controversies and stand ready to defend our clients’ livelihoods and reputations. 

Our Clients

  • Broker-Dealers
  • Registered Representatives
  • Securities firms
  • Investment banking companies

Why You Benefit

We are experience negotiators and vigorous advocates for broker-dealer clients, but our services go beyond securities dispute resolution.  Shumaker has the capability to aggressively protect the interests of broker-dealer clients in the additional areas of:  employment, mergers & acquisitions, real estate, intellectual property, tax, corporate and all other concerns relating to everyday business activities. 

Core Services

  • Advice on and litigation of disputes involving recruitment practices
  • Litigation of employment separation issues – most notably compensation
  • Defense of trade secrets, non-compete and non-solicitation agreements
  • Enforcement of covenants not to compete and employment agreement restrictions
  • Resolution of raiding disputes between broker-dealers
  • Representation before state and federal securities regulators in trading and licensing issues
  • Arbitration of any disputes subject to FINRA or other arbitration forums
  • Mediation, negotiation and alternative dispute resolution of financial services industry cases

What You Can Expect From Shumaker

Our litigators regularly represent broker-dealers in matters such as the opposition of injunctive relief in broker recruitment cases involving noncompetition and non-solicitation contracts, and in regulatory and disciplinary matters before state and federal securities regulators and exchanges.  We also represent broker-dealers accused of underwriting misrepresentation, in wage disputes and EEOC discrimination claims.  We have additionally handled many customer disputes against broker-dealers in arbitration and in court, alleging inappropriate investment and trading strategies.

Our lawyers are also experienced in counseling broker-dealers and registered representatives on how best to comply with and enforce the terms of the Protocol for Broker Recruiting – an agreement our attorneys assisted in drafting.  We have helped national brokerage firms grow their broker-dealer teams through strategic recruiting techniques and protection for new recruits, while avoiding legal entanglements.  Our lawyers are experienced in the recovery of deferred compensation through “golden parachute” provisions contained in registered representatives’ deferred compensation contracts.

Because we have a deep understanding of the financial services industry, we know what works for proper and effective representation, and we have a team of lawyers devoted to the litigation of financial services industry cases.

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