Securities litigation in court may be available against financial firms and other companies when there is no arbitration agreement. Although virtually all customers of brokerage firms will be contractually required to arbitrate their claims, (see Securities Arbitration) there are occasions where litigation is available and desirable. Some such cases may involve cases brought against an issuer of securities or others involved in structuring an investment or selling the investment. Such case examples include court actions against those involved in promoting private placements, brokers who ‘sell away’ from their employing brokerage firm and sellers of life settlement/viatical investments.

Litigation in court has benefits and drawbacks. Benefits include the ability to obtain broader discovery, including depositions, and the presence of a jury to hear and decide your case. Drawbacks include the added time and expense of litigation, compared to either arbitration or mediation. Court cases generally afford the parties little privacy, so that personal financial information may be available to spectators upon review of a court file or attendance at final trial. In contrast, arbitration and mediation offer greater privacy with the pleadings and hearing sessions being closed to the public, and often blanketed with some degree of a confidentiality agreement.

Experienced securities attorneys are best able to help you ascertain whether litigation is available to you and counsel you on your choices given the particular facts of your case. Many states have short statutes of limitation, and these are enforced in court. Thus, if you are concerned you’re you have lost on your investment due to another’s wrongdoing, you should promptly act and consult an attorney with experience steeped in the securities field.