Strickland v. Calton & Associates, FINRA Case #22-02233

Court Affirms Validity of FINRA’s Six-Year Eligibility Rule

The claimant asserted causes of action, including breach of fiduciary duty, negligence, violation of the Arizona Consumer Fraud Act, and negligent misrepresentation related to her purchases of American Realty Capital Healthcare Trust, Inc. (HTI) and American Realty Capital Healthcare Trust II, Inc. (HTII). The Statement of Claim was filed on September 29, 2022. 

The FINRA Arbitration Panel granted the respondent’s, the broker-dealer, motion to dismiss pursuant to FINRA Rule 12206. The panel found that the operative date for the eligibility determination with respect to HTI occurred in mid-2014, when a liquidity event occurred, and on June 4, 2014, the purchase date of HTII. Both events occurred more than eight years prior to the filing of the Statement of Claim. Therefore, the claims related to both products exceeded FINRA’s six-year eligibility rule. 


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