Securities Law Blog

January 2009 echoes the trend started in December 2008—simply put, new filings are flooding FINRA. The statistics, courtesy of Securities Arbitration Commentator, are as follows: With 525 new submissions, the month of January 2009 doubled the filings reported in January 2008.

December 2008 was also the largest month for new filings for 2008, so the January 2009 figures show that the momentum of late 2008 is continuing. The biggest growth in cases occurred in the derivative sector, where 801 of the new cases in 2008 involved derivatives. Another 299 cases involved disputes related to auction rate securities (ARS). Auction rate securities disputes generated 26 of the 525 new January 2009 arbitration proceedings, which means that, despite the regulatory settlements and the class actions, new ARS claims continue to be filed in droves.

Product-wise and percentage-wise, the most prominent growth in filings occurred with respect to variable annuities, with 11 new disputes submitted in January 2009. Mutual funds disputes account for the largest number of new cases: 121 of the 525 January submissions. Given state of the economy, it is safe to assume that this upswing will only continue.