Securities Arbitration v. Class Action

Because of the decline in value of UBS Willow Fund stock, several class action lawsuits have been filed in federal court. Potential class members who purchased UBS Willow Fund stock should consider whether they should file an individual securities arbitration claim in addition to participating in the class actions. Investors who held UBS Willow Fund stock at a full service brokerage firm and sustained substantial losses may be able to recover their losses through the arbitration forum established by the Financial Industry Regulatory Authority (“FINRA”). FINRA’s Arbitration Department is where investors, both retail and institutional, go to seek redress as a result of sales practice violations committed by their brokerage firm, including claims of over-concentration, misrepresentation and omission, unsuitable recommendations and failure to supervise. While class action lawsuits could take several years, securities arbitration claims are usually concluded within two years.

Among other factors, when you file a securities arbitration claim, your individual, personalized case facts are considered by the Panel, and they are factored into the value of the case. In other words, in the securities arbitration forum, you are not just another number in a pool of class members, but you are person who has a story to tell. Securities arbitration represents your best opportunity to obtain the maximum recovery for losses sustained in your full-service brokerage account.

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