What is Securities Arbitration For Oppenheimer Champion Fund Losses?
Securities arbitration is the method of having
a dispute between a brokerage firm and its client resolved by impartial individuals who are knowledgeable in the securities
areas in controversy. Those persons are called arbitrators. FINRA (formerly known as the NASD or National association of Securities
Dealers) arbitration actions have long been used as an alternative to the courts because it is an inexpensive and prompt means
of resolving complicated issues. Unlike court decisions, FINRA arbitration awards are final and binding, subject to review
by a court only on a very limited basis.
Where
Do Investors Who Purchased the Oppenheimer Champion Fund FINRA Arbitration Hearings Occur?
All arbitrations involving the Oppenheimer Champion Fund are administered through
FINRA all over the country. FINRA employs independent arbitrators, usually lawyers or business people,
who sit and hear the client’s case and makes a decision. The arbitrators will conduct a hearing. Each side (the Claimant
and the Respondent) will have the chance to tell its version at the arbitration and there will be cross-examination. Most
FINRA arbitration cases are handled in the largest city closest to the investor’s home. Each state has at least one
hearing location. The arbitration hearing will occur in an office building or hotel and not a courthouse. It could last several
days.
Do I have a Choice
When It Comes To Arbitration Involving the Oppenheimer Champion Fund?
No. A binding arbitration clause in the brokerage account agreement
where you bough the Fund means investors have no choice but to adjudicate their case through FINRA arbitration.
The only other option is class action litigation. If an investor files a lawsuit in court, the case
will be dismissed and referred to FINRA arbitration. While no class actions have been filed against Oppenheimer,
we expect some to be filed very shortly.
How
Much Can Be Recovered in Arbitrations In Claims Involving the Oppenheimer Champion Fund?
The most basic remedy
for damages against the brokerage firm whose advisors recommended the Fund is out-of-pocket losses. The out-of-pocket loss
is generally the amount of money invested by the client in the funds minus the returns and the residual value of the investment.
In addition to out-of-pocket losses, an investor in a FINRA arbitration may be awarded damages based on the profits he or
she would have made had the wrongful act not occurred. These lost profits are recoverable in some FINRA cases but it is very
fact specific to each case. Investors may be awarded anything from no compensation all the way to losses, attorney fees
and interest. There are no guarantees or assurances in arbitration.
FINRA arbitrators in lawsuits involving the Oppenheimer Champion Fund have the power to award
punitive damages and may do so where the facts warrant them and they are satisfied that there is an adequate basis in law
to do so. Punitive damages against advisors or firms may be any amount and they are to punish firms and to deter future misconduct.
Punitive damages are rare in FINRA arbitration actions.
How Long Does the Arbitration Process
Take?
Usually the process takes 12 months. If over the age of 65, the process can take 6 months if granted
fast racked status by FINRA
