On November 6, 2017, the Second Circuit clarified that plaintiffs do not need to provide an “event study” to demonstrate market efficiency at the class certification stage in putative class actions. Rather, courts will certify a putative class if plaintiffs can demonstrate sufficient indirect evidence of market efficiency. Waggoner v. Barclays PLC, No. 16-1912-cv (2d. Cir. Nov 6, 2017).
Continue reading “Second Circuit Makes Class Certification in Securities Cases Easier”
Will FINRA claims change in the wake of the June 9, 2017 DOL Fiduciary Duty Rule (the New Rule)?
While it does not presently have all of the bells and whistles the securities industry has been bracing itself for, it nonetheless places brokers and their broker-dealer employers servicing regular brokerage IRAs in the role of a fiduciary for these accounts. This changes the rule of law in most jurisdictions which previously only held a broker/broker-dealer to a suitability standard unless there were special circumstances. See De Kwiatkowski v. Bear, Stearns & Co., Inc., 306 F.3d 1293, 1302 (2d. Cir. 2002).
Continue reading “What Effect, if any, will the DOL Fiduciary Duty Rule have on FINRA Arbitrations?”
The playing field for the financial services industry in general, and broker-dealers and brokers in particular, has changed during this past year. On June 9, 2017, the Department of Labor (“DOL”) fiduciary advice standard, which is applied to all financial professionals advising retirement (plan and IRA) accounts, became applicable. As a result, the standard of care required of broker-dealers providing advice to IRA investors has changed, at least in many cases. This Article describes the effect on litigation against broker-dealers providing advice to IRA investors that would result if firms are required to enter into “Best Interest Contracts” with IRA investors, as the DOL’s Best Interest Contract Exemption currently requires.
Continue reading “The DOL’s Best Interest Contract Requirement: Effect on Litigation Against Broker-Dealers”
