Study Shows that Firms Should Lawyer-Up When Charged by FINRA and SEC
The law firm Sutherland Asbill & Brennan published a study that indicates that broker-dealers charged by FINRA or the SEC should hire lawyers and mount a defense rather than quickly settle. According to the study, based on cases brought from 2008-2010, FINRA respondents with counsel succeeded in having charges dismissed nearly 10% of the time whereas respondents without counsel never succeeded in having charges dismissed. The study also indicates that retaining counsel and defending a case generally results in lower fines and lesser charges. The study also suggests that there may not be a penalty discount for settling before an action is filed.
OUR TAKE: The choice to settle or fight clearly depends on the facts of a particular case. However, we certainly recommend retaining counsel when accused of wrongdoing by the regulators.
Posted by Todd Cipperman at 3/18/2011 5:43 AM 
Categories: Compliance and Operations
Tags: litigation enforcement settlement
Categories: Compliance and Operations
Tags: litigation enforcement settlement
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