Dismissal of Case Before FINRA
Successfully represented an investment professional before the Financial Industry Regulatory Authority (FINRA). In a matter venued in Chicago, the defense succeeded on a motion to dismiss based upon FINRA's six-year eligibility rule. The investments at issue were made in 2004, but the claim was not filed for binding arbitration with FINRA until 2014. The applicable FINRA rule states that "[n]o claim shall be eligible for submission to arbitration...where six years have elapsed from the occurrence or event giving rise to the claim." However, FINRA does not provide a specific definition of "the occurrence or event giving rise to the claim. The defense argued that the six-year period is triggered from the date of the investment. A panel of three arbitrators unanimously agreed that the triggering event was the date of purchase and dismissed the case with prejudice.