FINRA Broker-Dealer

Troutman Sanders’ lawyers have extensive experience representing and advising broker-dealers and other financial institutions in a wide range of disputes involving the distribution and sale of securities. We have successfully defended claims asserted by retail customers and institutional investors such as those alleging fraud, misrepresentation, unauthorized exercise of discretion, churning, unsuitability, improper supervision and improper sales practices. Our extensive knowledge of compliance issues, investment products, FINRA rules, supervision, and sponsors qualifies us to handle a wide range of matters, from single-investment cases to multi-million dollar multi-party claims. Our Corporate/M&A team has experience in the purchase and sale of controlling interests in broker-dealers including the preparation and filing of FINRA Rule 1017 “continuing membership applications” required for such transactions; and our Securities team regularly represents broker-dealers in private placements and public offerings.

We have represented broker-dealers in investigations and enforcement actions by the SEC, PCAOB, FINRA and other regulatory agencies. We have prevailed in numerous NASD and FINRA arbitrations through final award or judgment and have been successful in obtaining dismissals for our clients related to claims alleging fraud, unauthorized trading, churning, and unsuitable investment recommendations.

Our lawyers work closely with attorneys in related practice disciplines throughout the firm, such as financial institutions, corporate, government investigations, white collar criminal defense, financial services and securities litigation to provide our clients with a multidisciplinary approach and strategy to limit the risk and exposure of litigation claims.

Representative Experience

  • Successfully defended broker dealer against securities fraud and suitability claims asserted by institutional investor arising from the purchase of auction rate securities. Obtained a full defense decision with the dismissal of all claims after FINRA arbitration hearing.
  • Obtained the complete dismissal of all claims filed by institutional investor in California Superior Court against broker dealer arising from the sale of auction rate securities.
  • Defended brokerage firm in $100 million action involving the issuance of mortgage backed securities. Settled case for less than costs of defense.
  • Defended brokerage firm in multimillion-dollar professional negligence claims. Won complete dismissal of claims at arbitration.
  • Defended brokerage firm in breach of fiduciary duty action brought by foreign investor. Achieved a complete dismissal of action prior to trial.
  • Successfully defended brokerage firm in fraud claim related to purchase and sale of portfolio of securities between professionally managed investment funds.
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