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Find Out How Long You Have to Hire a Stockbroker Fraud Lawyer to Pursue a Claim in FINRA Arbitration

If you have suffered fraudulent investment losses, hiring a stockbroker fraud attorney is the first step toward holding your broker accountable. In most cases, defrauded investors can pursue claims against their brokers in FINRA arbitration, and our attorneys have decades of experience successfully pursuing these claims on behalf of our clients.

All stockbroker fraud claims are subject to statutes of limitations. These are laws that place an outer limit on how long you have to assert your legal rights. The Financial Industry Regulatory Authority (FINRA) has established a deadline for asserting claims in arbitration as well.

How Long Do You Have to File a Stockbroker Fraud Claim?

So, how long do you have to file a stockbroker fraud claim? The answer is more complicated than you might think. In most cases, there are three deadlines that will potentially apply:

The Two-Year Statute of Limitations for Claims Under Federal Securities Laws

The Securities Exchange Act of 1934 and Rule 10b-5 govern most stockbroker fraud claims filed under federal law. Claims filed under the Securities Exchange Act of 1934 and Rule 10b-5 are subject to a two-year statute of limitations.

The two-year statute of limitations runs from the date that the investor learned of, or reasonably should have learned of, the fraud. If the fraud is ongoing, the statute of limitations typically doesn’t start to run until the end of the fraudulent scheme.

The Five-Year Statute of Repose for Claims Under Federal Securities Laws

In addition to the two-year statute of limitations, stockbroker fraud claims under federal law are also subject to a five-year statute of repose. The statute of repose bars investors from filing claims even if they haven’t discovered the fraud within this five-year period.

The Six-Year Deadline for FINRA Arbitration

In addition to pursuing claims against their stockbrokers under federal law, defrauded investors can also pursue claims under FINRA’s Rules. FINRA has established a six-year deadline for filing claims in FINRA arbitration.

As FINRA notes, while the Rules, “allow a claim to be filed within 6 years of the occurrence or event giving rise to the cause of action . . . ‘statutes of limitations’ [for certain federal claims] may be shorter than 6 years.” However, since the protections in FINRA’s Rules largely mirror those established under federal law (and expand upon them in many respects), defrauded investors will have up to six years to assert their rights in FINRA arbitration in most cases.

Schedule a Free Consultation with an Experienced Stockbroker Fraud Attorney

If you need to know more about filing a claim against your stockbroker, we encourage you to schedule a free consultation at Zamansky LLC. Our lawyers represent defrauded investors in FINRA arbitration cases nationwide. To speak with an experienced stockbroker fraud lawyer about your legal rights as soon as possible, please call 212-742-1414 or contact us confidentially online today.

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“Jake Zamasky and his colleagues represented me in a FINRA arbitration case against a large multinational bank and succeeded in obtaining an award for the full amount of my investment losses. I would highly recommend the Zamansky firm for their experience in securities litigation, their level of detailed research and case preparation, and their ability to effectively fight for what’s right.”

Richard R.

“Throughout my entire case, Jake Zamansky was incredibly responsive and spent time walking me through each step of the process. He is professional and worked with my challenging schedule, even meeting with me nights and on weekends. He knew exactly which turn to take when it came to my case and yet was respectful of any decisions I wanted to make resulting in a positive outcome.”

Donald A.

“Jake Zamansky and his firm represented me in a FINRA arbitration case to recover investment losses. Jake and his team were very professional and worked very hard preparing for trial and then reaching a substantial settlement of our case. I would highly recommend them.”

William E.

“Jake Zamansky represented me in a FINRA arbitration case which allowed me to recover a substantial portion of investment losses. He is truly an expert in this space and I would highly recommend him to those investors who may have been been a victim of investment fraud.”

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