Thursday, August 13, 2020

4th Circuit Court Reinstates $1.5 Million VXX Arbitration Award Against Interactive Brokers

In August 2020, the US 4th Circuit Court of Appeals reversed the US District Court for the Eastern District of Virginia’s Order vacating and remanding for hearing before a new arbitration panel a modified arbitration award against Interactive Brokers. You can read the Appeals Court’s Order here. Previously in January 2018, a FINRA panel in Richmond, VA ordered Interactive Brokers to pay at least $1,544,843 in compensatory damages and attorneys’ fees. You can read the modified award here. Dr. McCann testified on liability and damages over Interactive Broker’s application of portfolio margin rules to a portfolio of VXX ETNs and options on VXX ETNs.

Wednesday, April 8, 2020

District Court Order Confirming $3.4 Million Torres v MSSB Award

In April 2020, the US District Court for the Southern District of Florida confirmed an arbitration award against Morgan Stanley over Puerto Rico municipal bonds. You can read the District Court’s Order here. Previously in July 2019, a FINRA panel in Miami, FL ordered Morgan Stanley to pay $3,231,421 including $3 million in monetary sanctions for discovery abuse. You can read the award here. Dr. McCann testified on liability and damages over Puerto Rico closed end funds and municipal bonds.

Thursday, March 5, 2020

$750,000 Burch v Huntleigh Securities Corporation Option Award.

In March 2020, a FINRA arbitration panel in St. Louis, MO ordered Huntleigh Securities Corporation to pay the Claimant $750,000 including $200,000 in punitive damages and $250,000 in attorney's fees. You can read the award here. Dr. McCann testified that the securities portfolio was poorly diversified and the heavy use of short call options in the portfolio substantially increased the risk beyond what was appropriate for the Claimant.




Wednesday, January 29, 2020

$455,000 Abdallah v FMSBonds Puerto Rico Bond Award

In January 2020, a FINRA arbitration panel in Boston, MA ordered FMSBonds to pay $455,000 including $80,000 in attorneys’ fees. You can read the award here. Dr. McCann testified on liability and damages over Puerto Rico municipal bonds.