What You Must Know
- A Georgia appeals court docket has reversed a January ruling that discovered Wells Fargo manipulated the FINRA arbitrator pool.
- In its August resolution, the appeals court docket mentioned it discovered nothing to point manipulation on Wells Fargo’s half.
- PIABA President Michael Edmiston mentioned that arbitrator choice is vital in each case.
A Georgia appeals court docket has reversed the choice by a decide issued in January that Wells Fargo and its counsel “manipulated” the Monetary Business Regulatory Authority’s arbitrator choice course of.
Choose Belinda Edwards of the Georgia fifth Superior Court docket District Atlanta Circuit dominated earlier this yr that Wells Fargo and its counsel “manipulated” FINRA’s arbitrator choice course of and violated the FINRA Code of Arbitration Process, denying buyers their contractual proper to a impartial, computer-generated record of potential arbitrators.
However the appeals court docket acknowledged in its Aug. 2 resolution: “Nothing signifies that Wells Fargo manipulated the arbitrator pool.”
Edwards’ Jan. 25 order centered on a 2017 FINRA dispute filed by Wells Fargo Advisors shopper Brian Leggett over greater than $1.1 million in losses that he mentioned he incurred by the hands of Wells Fargo brokers. In 2019, an arbitration panel denied Leggett’s declare.
In 2021, Leggett requested the Georgia court docket to vacate the Wells Fargo award whereas Wells Fargo requested the court docket to verify it.
Edwards vacated the FINRA arbitration resolution, discovering that Wells Fargo and its counsel manipulated the arbitration course of. The manipulation was completed with the assistance of FINRA Dispute Decision Companies, in response to Edwards.