Study Argues that Firms Should Consider Litigation with SEC/FINRA
A study conducted by the law firm Sutherland Asbill & Brennan concludes that firms faced with an SEC or FINRA action should consider litigation rather than immediately settling. Over 14% of litigated FINRA cases resulted in dismissal, although no SEC cases were dismissed. Those represented by counsel succeeded over 18% of the time and un-represented respondents never won. Litigation also can lead to dismissal of fraud charges (22% of the time), lower sanctions (31.3% of cases), and victories on appeal. The results show a higher success rate with FINRA actions than with the SEC.