Facts

Claimant Karen Schwartz brought suit against respondent Bank of America Investment Services Inc., alleging breach of the customer agreement, breach of fiduciary duty, failure to supervise, negligence and violation of NASD Conduct Rules. Respondent requested dismissal of claimant's claim and request for costs.

CLAIMANT'S CONTENTIONS:
Claimant contended respondent failed to recommend a suitable investment strategy and failed to protect her concentrated stock position in Level 3 Communications.

RESPONDENT'S CONTENTIONS:
Respondent denied claimant's allegations of wrongdoing.

Damages

Claimant sought $35,000,000 in compensatory damages, unspecified punitive damages, interest, and costs, including attorney fees.

Result

The panel decided claimant's admitted losses occurred in 2000 and her claims accrued no later than March 9, 2001. Her claim was thus barred by the six-year statute of limitations and made amendment futile. Respondent's motion to dismiss was granted with prejudice.

Other Information

Respondent moved to dismiss claimant's claims based on NASD Code of Arbitration Procedure Rule 10304's six-year statute of limitations. During a telephonic pre-hearing conference, claimant requested leave to amend the original complaint to further explain her personal circumstances, but not to add other causes of action. ARBITRATORS: Judith Gust, Evelyn Wiggins, Zachary Rigdon.