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Securities
Breach of Fiduciary Duty
Suitability

Jordan H. Moffet, Margot A. Trombley, individually and as Trustees of the Moffet Family Trust v. Oppenheimer & Co., Inc.

Published: Nov. 27, 2010 | Result Date: Nov. 9, 2010 | Filing Date: Jan. 1, 1900 |

Case number: 09-01568 Arbitration –  $18,442

Court

FINRA


Attorneys

Claimant

Todd A. Higgins


Respondent

Devin A. Donohue
(Lombardi & Donohue LLP)


Facts

Jordan Moffet and Margot Trombley entered into arbitration with Oppenheimer & Co., Inc. regarding sales and marketing of Auction Rate Preferred Shares (ARPS).

Contentions

CLAIMANTS' CONTENTIONS:
Moffet and Trombley, individually and on behalf of the Moffet Family Trust, alleged suitability, breach of fiduciary duty, fraud, negligence, breach of contract, and equitable relief.

RESPONDENT'S CONTENTIONS:
Oppenheimer denied the allegations, asserting various affirmative defenses.

Damages

Moffet and Trombley sought an order to compel Oppenheimer to purchase the ARPS, as well as rescission of the purchase, return of the principal investment, actual damages of $700,000, punitive damages, attorney fees, and costs.

Result

The arbitration panel found that Oppenheimer should rescind the sale and repurchase at par value $650,000 worth of ARPS, as well as awarding Moffet and Trombley $18,441.98 in witness fees and costs.

Other Information

ARBITRATORS: Elizabeth A. Copley, Mary L. Williams, David Nielsen.


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