Securities Mediation


Securities Fraud Attorneys Explain Mediation

Often a dispute between an investor and his or her brokerage firm can best be resolved through mediation. In mediation, the parties agree on and hire a mediator to conduct negotiations in an effort to reach a reasonable compromise. Mediation is often a productive way to reach settlement in cases that involve large losses, personal animosity or both.

Our securities and investment fraud law firm has extensive experience with mediation, having participated in hundreds of mediations over the years. We hire only highly experienced mediators and those with whom we have had excellent results on behalf of our clients.

FINRA also offers a mediation forum, an overview of which can be found here.

How Does Mediation Differ from Arbitration?

Mediation is a collaborative, non-binding process in which the parties work through a mediator to reach a negotiated settlement of their dispute. It differs from arbitration in that in mediation, the parties are not obligated to accept the mediator’s recommendation, whereas in arbitration, the arbitration panel’s decision is binding.

Who Are the Mediators?

Our securities fraud attorneys work with only the highest caliber mediators who are deeply experienced with disputes between investors and their brokerage firms. Typically these mediators have also acted as arbitrators (and in some cases have actually trained the arbitrators), so they have a full understanding of the FINRA arbitration process. This experience and knowledge allows the mediators  to accurately assess the value of each case and find a middle ground that both parties can accept.

Benefits of Mediation

Mediation is a way of collaboratively resolving a dispute, rather than litigating and leaving the decision in the hands of an arbitration panel. It also allows investors to avoid some of the expenses of a full-blown arbitration hearing. Mediation  provides a forum for both parties to present their views and evidence without the prospect of testifying and sitting through a multi-day arbitration hearing. If the mediation does not achieve a result the investor is comfortable with, it is non-binding and the investor can simply move ahead with arbitration. When mediation is successful, settlements are entirely confidential, ensuring privacy for the investor.

If you are involved in a dispute with your brokerage firm that may be able to be resolved through mediation or if you have questions about the process, contact an experienced securities mediation and arbitration lawyer at Zamansky LLC.  We offer free, initial consultations and respond to all inquiries within 24 hours.