LPL Financial’s $5.8 million FINRA arbitration claim

Bass, Berry & Sims PLC advised LPL Financial in a $5.8 million FINRA arbitration claim.

The claimants asserted that LPL improperly concentrated their personal and ERISA plan accounts in precious metals and cash positions for years, causing them to completely miss out on significant gains during the stock market’s historic rise after the global credit crisis. Claimants also alleged that their LPL advisor misrepresented the nature of their investments and the performance of the accounts. The case was challenging because the accounts were managed with discretion and involved pension plan assets subject to heightened fiduciary duties. After an unsuccessful mediation and a two week final hearing, the FINRA arbitration panel issued an award denying the claims in their entirety.

Bass, Berry & Sims PLC advised with a team including Michael A. Brady (Picture) and Amy Worrell Sterling.

Involved fees earner: Michael Brady – Bass Berry & Sims; Amy Worrell Sterling – Bass Berry & Sims;

Law Firms: Bass Berry & Sims;

Clients: LPL Financial;


Author: Ambrogio Visconti