For the first time, the U.S. Court of Appeals for the Second Circuit has announced a bright-line rule to determine which investors are entitled to arbitration with the Financial Industry Regulatory Authority.
On Friday the Second Circuit held that the Saudi Abbar family cannot pursue FINRA arbitration over $383 million that it allegedly lost in a risky investment with a Citigroup Inc. affiliate. Writing for a unanimous panel, Judge Dennis Jacobs ruled that an investor must purchase goods or services from a FINRA member or have an account with a FINRA member to be considered a “customer” under FINRA, and therefore have the right to demand arbitration.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
