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Behind the Headlines: Leggett et al v. Wells Fargo, Vacating a FINRA Arbitration Award

Joan Stearns Johnsen, Christine Lazaro, and Nicole Iannarone

A Georgia state court recently granted a motion to vacate a FINRA arbitration award. While motions to vacate are infrequently granted, this judge overturned the arbitration award on multiple grounds, finding (i) the arbitrator selection process violated the FAA, section 10(a)(4); (ii) the arbitrators’ refusal to postpone the hearing violated the FAA, section 10(a)(3); (III) the arbitrators’ refusal to hear relevant, non-cumulative evidence violated the FAA, section 10(a)(3); (iv) the award was procured by fraud in violation of the FAA, section 10(a)(1); and (v) the arbitrators violated the FAA, section 10(a)(3) by imposing costs and hearing session fees against the investors. Our speakers will break the award down, discussing the court’s reasoning for each ground upon which it vacated the award.

Sponsored by the Alternative Dispute Resolution Committee
Co-sponsored the by NYSBA Dispute Resolution Section and NYSBA Commercial and Federal Litigation Section, Securities Arbitration Committee