How to Recover Investment Losses through FINRA Arbitration in Seven Steps (or Less)

November 10, 2017

Recover Investment Losses through FINRA Arbitration in Seven Steps (or Less)



​When you first contact Lufrano Law, LLC, we will likely schedule a free consultation as soon as possible to discuss your potential case.  During this telephone or in-person consultation, we may ask you to send us account statements or other documentation so we can evaluate and better understand your potential case.  

​If we determine that we will pursue your case, and if you determine that you want to hire our law firm, we will send you a retainer agreement that will explain your rights and detail our contingency fee arrangement (we only receive compensation if we recover on your behalf).  



Once retained, we will ask you questions and review your documents because we want to understand everything about you, investments, and your investment professional.  We will then draft a document called a "Statement of Claim" that is similar to a complaint filed in court.  

​The Statement of Claim contains the basic facts of your case, the legal theories upon which we contend you are entitled to relief, and a demand for damages (money).  Finally, we file the Statement of Claim with the Financial Industry Regulatory Authority (FINRA), which commences the arbitration against your brokerage firm.



Once the Statement of Claim is filed, the parties follow a process set forth by FINRA that is designed to provide the parties a fair and efficient arbitration.  During this process, we fill safeguard your interests and fight on your behalf to ensure that you have the best chance of receiving an award at the hearing, including:

  • Arbitrator ranking and selection

  • Initial pre-hearing telephonic conference with the arbitrators

  • Discovery (where both parties produce documents to the other side)

  • Possible motion practice​​​


In general and in our experience, most cases settle after a claimant files a Statement of Claim and before a fully adjudicated hearing (although each case is unique and there is no guarantee this will occur).  There are various reasons why parties choose to settle a case prior to the hearing, including but not limited to avoiding the cost, stress and risk associated with a hearing.  If the opportunity presents itself for a settlement, our attorneys will walk you through your options, including whether participating in a mediation would be beneficial.




We always aggressively pursue each case with the assumption that each case will go to hearing, because every case is different and not all cases settle.  In the event your case does not settle, our attorneys will thoroughly prepare all the necessary components so you can win your case.  

​We will personally review every document related to your case, in-house, so that we know every fact of your case.  We will examine and analyze the financial data in your case in order to effectively and persuasively present the information to the arbitrator.  We may hire an expert.  We may file a pre-hearing brief that addresses specific issues particular to your case and/or create charts and graphs to illustrate your case.  We will prepare you and your witnesses for the hearing.​















The hearing is where both parties tell their stories and present evidence to the arbitration panel.  A hearing is both similar and dissimilar to a trial.  For example, at a hearing there are witnesses, exhibits and experts.  

​However, unlike a trial, a hearing is regarded as informal and will usually take place in a conference room located near where you lived during the time the dispute arose.  We will walk you through the entire hearing process so you are comfortable and know what to expect. 


AWARD/PAYMENT (no guarantee of results)

The arbitrators will render a decision in your case within 30 days from the conclusion of the hearing.  In the event we receive a favorable award, the brokerage firm is required to comply with the award within 30 days.  

​Lufrano Law, LLC will then send you a check minus costs and our attorneys' fees as soon as possible.
















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How to Recover Investment Losses through FINRA Arbitration in Seven Steps (or Less)

November 10, 2017

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818 Harrison Street, Suite 210

Oak Park, IL 60304

Tel: 800.627.2179

Local: 708.628.3380 

Fax: 844.721.6019