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Our research and testimony frequently result in awards, decisions and orders. See what our experts have been working on.

Displaying 10 out of 23 results

Beard v Citigroup - $336,000 ASTA Five Award

In December 2010, a FINRA arbitration panel in Los Angeles, CA ordered Citigroup to pay Claimants $336,000 including $31,629 in fees and costs over the sale of Citigroup's ASTA Five leveraged municipal bond hedge fund. The award was made after a hearing wherein the Claimants alleged that Respondent breached contractual and fiduciary duties and misrepresented ASTA Five. Dr. McCann testified on behalf of the Claimants.

Barnett et al v Citigroup - $2,428,000 MAT Five Award

In December 2010, a FINRA arbitration panel in Memphis, TN ordered Citigroup to pay Claimants $2,428,000 over the sale of Citigroup's MAT Five leveraged municipal bond hedge fund. The award was made after a hearing wherein the Claimants alleged that Respondent breached contractual and fiduciary duties and misrepresented MAT Five. Dr. McCann testified on behalf of the Claimants.

Chapman v Citigroup - $3,000,000 Concentrated Stock Award

In November 2010 a FINRA arbitration panel in San Francisco, CA ordered Citigroup to pay $3,000,000 to the Claimant who alleged, among other claims, breach of fiduciary duty, breach of contract and failure to supervise. Dr. McCann testified on behalf of the Claimant about the feasibility and impact of hedging strategies for concentrated stock positions.

Flautt v Morgan Keegan - $2,138,805 (MKHIX, RSF, RHY) Award

In November 2010, a FINRA arbitration panel in Boca Raton, FL ordered Morgan Keegan to pay at least $2,138,805 in damages and prejudgment interest to Claimants. The award was $1,825,517 in capital losses and at least $313,288 in prejudgment interest. The panel found Morgan Keegan explicitly "liable for misrepresentations and omissions (common law fraud), breach of fiduciary duty, unsuitable investments, negligence, failure to supervise, breach of contract, and vicarious liability" related to Claimants' investments in the RMK Select High Income Fund (MKHIX), RMK Strategic Income Fund (RSF), and RMK Multi-Sector High Income Fund (RHY). Dr. McCann testified on behalf of the Claimants.

Quiros v Merrill Lynch - $500,000 Award

In November 2010, a FINRA arbitration panel in Los Angeles ordered Merrill Lynch to pay compensatory damages of $500,000 to Claimant William Quiros. Claimant alleged that Merrill Lynch failed adequately to supervise the securities-related activities of two registered representatives, one of whom was conducting business away from his branch office. Claimant also alleged fraud and misrepresentation in connection with the offering of a security Merrill Lynch had not approved for sale. On behalf of the claimant, Mr. Meyer testified about a broker-dealer's duty to supervise all the securities-related activities of its associated persons.

Lesmir et al v Wedbush - $3.1 Million Nuveen ARPS ARS Award

In November 2010, a FINRA arbitration panel in Seattle, WA ordered Wedbush Morgan to redeem at par $2,825,000 in auction rate preferred securities plus $2245,865 in attorneys' fees and costs. The award was made after a hearing wherein the Claimants alleged Respondents breached fiduciary duties and committed securities fraud. Dr. McCann testified on behalf of the Claimants.

Mercer v Morgan Keegan - $444,978 (RSF, RMA, RHY) Award

In November 2010, a FINRA arbitration panel in Orlando, FL ordered Morgan Keegan to pay $444,978 in damages plus attorneys' fees and costs to be determined. The award was made after a hearing wherein the Claimants alleged Respondents breached contractual and fiduciary duties and committed securities fraud. The panel found Morgan Keegan liable for "breach of fiduciary duty; unsuitability and failure to supervise." The claims related to Claimants' investments in the RMK Strategic Income Fund (RSF), RMK Advantage Income Fund (RMA) and RMK Multi-Sector High Income Fund (RHY). Dr. McCann testified on behalf of the Claimants.

Hagman v Citigroup - $11,558,127 Award

In October 2010 a FINRA arbitration panel in Los Angeles, CA ordered Citigroup to pay a total of $11,558,127, including punitive damages of $10 Million, attorneys' fees, and costs. Claimants alleged breach of fiduciary duty, fraud, and failure to supervise. On behalf of the Claimants, Mr. Meyer testified about the role of asset allocation in making suitable recommendations and the duty to impose heightened supervision on registered representatives with a history of customer complaints.

News Article
- The New York Times, October 9, 2010 - "It's Not Nice to Mess With J.R."

Garrett et al v Morgan Keegan - $9.2 Million (RMH, RSF, RMA, RHY)

In October 2010, a FINRA arbitration panel in Houston, TX ordered Morgan Keegan to pay $9.2 Million in damages including $1.1 Million in attorneys' fees and $78,000 in costs. The award was made after a hearing wherein the Claimants alleged Respondents breached contractual and fiduciary duties, failed to suitably invest Claimants' accounts, and failed to supervise Claimants' accounts. "Claimants alleged that the suit arises out of a fraudulent scheme that induced Claimants to invest substantial retirement and trust funds into high risky closed-end mutual funds, managed by Morgan Keegan, that purchased illiquid mortgage-backed loans and collateralized debt obligations." The panel found Morgan Keegan liable. The claims related to Claimants' investments in the RMK High Income Fund (RMH), RMK Strategic Income Fund (RSF), RMK Advantage Income Fund (RMA) and RMK Multi-Sector High Income Fund (RHY). Dr. McCann testified on behalf of the Claimants.

Silk v Citigroup - $1,000,000 MAT Three and MAT Five Award

In August 2010, a FINRA arbitration panel in Los Angeles, CA ordered Citigroup to pay Claimants $1,000,000 over the sale of Citigroup's MAT Three and MAT Five leveraged municipal bond hedge funds. The award was made after a hearing wherein the Claimants alleged that Respondent breached contractual and fiduciary duties and negligently misrepresented MAT Three and MAT Five. Dr. McCann testified on behalf of the Claimants.

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