Study Shows that Firms Should Lawyer-Up When Charged by FINRA and SEC
The law firm Sutherland Asbill & Brennan published a study that indicates that broker-dealers charged by FINRA or the SEC should hire lawyers and mount a defense rather than quickly settle. According to the study, based on cases brought from 2008-2010, FINRA respondents with counsel succeeded in having charges dismissed nearly 10% of the time whereas respondents without counsel never succeeded in having charges dismissed. The study also indicates that retaining counsel and defending a case generally results in lower fines and lesser charges. The study also suggests that there may not be a penalty discount for settling before an action is filed.