Stock Market Loss News

Lawsuits filed against Securities America claim fraud for its lack of risk disclosure with regard to the sale of $700 million dollars in private-placement Medical Capital notes. Massachusetts regulators challenge Securities America’s assertion that it was Medical Capital’s responsibility to disclose risk issues. Attorney Jay Salamon, quoted in article above, calls Securities America’s position preposterous.

An author maintains that while financial fraud claims increase during poor economic times this doesn’t mean that more fraud is occurring. Hugh Berkson challenged that assertion, explaining that financial salespeople may seek out less beneficial and even fraudulent products to sell to maintain their own revenue streams.

Three changes are deemed necessary to fix the broken securities arbitration system: improve the quality of the arbitrators, impose sanctions for procedural abuses, and reduce time and cost of the process. Unfortunately, these changes are unlikely to occur given the expected merger of the NSE and the NASD. Hugh Berson offers his thoughts in the

A proposed NASD rule would grant parties in securities arbitrations the right to demand written explanations of arbitration panel decisions. While the change could potentially provide a further understanding of seemingly arbitrary awards and increase investor confidence, attorney Jay Salamon voices his concern, in the above article, that brokerages will use the documents to file costly

The National Association of Securities Dealers (NASD) withdrew a proposed amendment to the arbitration code that would have allowed panels to dismiss claims prior to a full hearing. Investor plaintiffs’ attorneys successfully challenged the amendment. Attorney Hugh Berkson explains, in the article, that his clients are often required to participate in arbitration and deserve to