Judge dismisses Schwab suit to halt FINRA action

May 31, 2012 by

U.S. District Judge Elizabeth Laporte in San Francisco, California, rejected as premature Charles Schwab & Co.’s challenge to the Financial Industry Regulatory Authority’s (FINRA) ban on class action waivers. Charles Schwab & Co., Inc. v. Financial Industry Regulatory Authority, No. 3:12-CV-00518 (N.D. Cal., Hon Elizabeth D. LaPorte).  Judge LaPorte dismissed the case on jurisdictional grounds, finding Schwab had failed to exhaust its administrative remedies before filing suit against FINRA. The federal action followed a disciplinary action filed by FINRA against Schwab on February 1, 2012, alleging that Schwab had violated FINRA rules by seeking to impose mandatory arbitration on Schwab brokerage customers. Schwab countered that such mandatory arbitration clauses were lawful and enforceable in light of the Supreme Court’s decision in AT&T Mobility v. Concepcion.  You can see a copy of the opinion at this link: Charles Schwab v. FINRA – Order Granting Defendant’s Motion to Dismiss

Steve Larson
An experienced trial lawyer who handles both hourly and contingent fee cases, Steve has expertise in class actions, consumer cases, antitrust litigation, securities litigation, corporate disputes, intellectual property disputes, unfair competition claims, employment matters, and disputes involving family wealth. Steve regularly represents individuals and businesses in federal and state court and has obtained class-wide recovery in multiple class actions. A veteran practitioner, Steve's clients value his creative approach to resolving complex litigation matters.

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