Judy Resnick, co-founder and former chairman and chief executive officer of Dabney Resnick Imperial, LLC, a Los Angeles based brokerage firm was awarded $901,567 by an National Association of Securities Dealers (NASD) arbitration panel. The award against Imperial Credit Industries, Inc. (Nasdaq: ICII – news) and Imperial Capital Group, LLC came after more than one year of litigation stemming from the purchase by Imperial Credit Industries, Inc. of Ms. Resnick’s brokerage firm Dabney Resnick Imperial, LLC in May 1997. Among other claims, Ms. Resnick alleged that Imperial defrauded her in its acquisition of the firm. Imperial filed a counterclaim against Ms. Resnick alleging damages of more than $800,000, which was denied in its entirety by the arbitration panel.
Ms. Resnick is the president of The Resnick Group, a Los Angeles based investment advisory firm, an author and lecturer.
Ms. Resnick was by a Beverly Hills and Palm Springs, California law firm that represents clients against brokerage firms in securities arbitrations. According to Robert A. Uhl, “awards this large are unusual in securities arbitrations.”
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.