April 9, 2008
The Rule Proposal of FINRA to amend NASD Rules 12206 and 12504, regarding the filing of motions to dismiss, should be granted. Our firm represents investors who lost money due to their broker's negligence and fraud.
It has been my experience that many FINRA arbitration respondents and their attorneys routinely file motions to dismiss investors claims. Despite the numerous motions that have been filed, they are very rarely granted. In the past year alone, many of the motions that were filed against my clients were motions that raised factually-based issues, which would not be granted in state or federal court.
Based on the frequency in which these motions are filed, and the rarity in which they are granted, it appears that these motions are often filed simply to harass investors, to delay the arbitration process, and to incur additional costs for the investors. The acceptance of these proposed rules would significantly limit many of the needless, frivolous motions and would allow investors the opportunity to present their case before an arbitration panel under most circumstances.
Wherefore, NASD Rules 12206 and 12504 should be amended to preclude motions to dismiss.
Vincent J. Imbesi