The actor who played the villainous J.R. Ewing in 1980s TV show “Dallas,” became a victim of fraud and misconduct at the hands of Citigroup, a FINRA arbitration panel ruled this week.
The total award includes $10 million in punitive damages that Citi must pay to charities selected by Hagman, $1.1 million in compensatory damages and nearly $440,000 in legal fees.
Hagman, who also played astronaut Anthony Nelson in “I Dream of Jeannie” in the 1960’s TV show, had requested $1.35 million in damages.
According to the ruling, Hagman accused Citi in May 2009 of a breach of fiduciary duty and breach of contract, fraud by misrepresentation and omission, failure to supervise and violation of federal and state law.
The allegations stemmed from unspecified securities held in Citi accounts, as well as the purchase of a life insurance policy.
Hagman received the unusually large award after the arbitrators found Citigroup Global Markets “engaged in serious conduct,” meeting FINRA’s standards for punitive damages, the ruling said.
“We are disappointed and disagree with the panel’s finding and we are reviewing our options,” said Citigroup spokesman Alex Samuelson.
Industry arbitration panels are not required to explain their rulings.
FINRA arbitration is a dispute resolution process administered by the Financial Industry Regulatory Authority (FINRA). It provides a forum for resolving monetary disputes between investors and securities firms or brokers without going to court. The process is generally faster and less formal than traditional litigation, and decisions are made by a panel of arbitrators who are knowledgeable in securities law and industry practices. Arbitration through FINRA is binding, meaning the decision is final and enforceable in court. This process is commonly used for disputes involving investment losses, unsuitable recommendations, or misrepresentation. Investors must agree to arbitration in their brokerage agreements, often as a condition of opening an account. While arbitration can be a more efficient way to resolve disputes, it also has limitations, such as limited appeal options and potentially high costs. Despite these challenges, FINRA arbitration remains a crucial mechanism for investor protection and dispute resolution in the securities industry.