Thursday, April 1, 2021

$370,000 UBS YES Award

In March 2021, a FINRA arbitration panel in Columbus, OH ordered UBS Financial Services to pay $342,127 in compensatory damages, plus approximately $28,000 in expert witness fees. You can read the award here. Craig McCann testified on liability and damages over UBS's YES options overlay strategy.

Monday, January 4, 2021

US District Court issues Final Judgment in SEC v RPM

In December 2020, the United States District Court for the District of Columbia granted Final Judgement in Securities and Exchange Commission v RPM International, Inc et al, Civ No. 16-1803. The SEC alleged that RPM failed to timely disclose a False Claims Act (FCA) investigation and likely settlement with the Department of Justice (DOJ). Craig McCann submitted two expert reports and provided deposition testimony for the SEC on the stock price impact of RPM’s disclosures related to the DOJ FCA investigation. The Final Judgment in SEC v RPM International et al is available here. The SEC’s Litigation Release is available here and the SEC’s Complaint is available here.

Wednesday, December 30, 2020

$12.7 Million Estate Planning Equity Indexed Annuity Order

This month the King County Superior Court, State of Washington ordered CLA to pay $6.2 million in restitution and $6.5 million in civil penalties and issued injunctive relief in a case arising out of fraudulent free “estate planning” seminars used in part to gather information from unsophisticated seniors in Washington. The Order can be read here. Dr. McCann testified on behalf of the Washington Attorney General. The Court’s discussion of Mr. McCann’s testimony begins at page 29.

Friday, December 11, 2020

11th Circuit Affirms District Court Order Confirming $3.4 Million Puerto Rico Award

In December 2020, the US Court of Appeals for the 11th Circuit affirmed the April 2020 US District Court for the Southern District of Florida Order confirming an arbitration award against Morgan Stanley over Puerto Rico municipal bonds. You can read the Appeals Court decision here. 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.