Facts

David Shamsian and Roya Shamsian sued ING America Equities Inc., ReliaStar Life Insurance Co., Royal Alliance Associates Inc., and LPL Financial LLC, in connection with claimants' purchase of a variable life insurance policy and investments in REITs and stocks.

CLAIMANTS' CONTENTIONS:
Claimants asserted causes of action for fraud, breach of fiduciary duty against LPL and Royal Alliance, breach of the covenant of good faith and fair dealing, violation of unfair business practices, violations of federal and state securities laws and FINRA conduct rules.

RESPONDENTS' CONTENTIONS:
Respondents denied the allegations and asserted various affirmative defenses.

Damages

The Shamsians sought no less than $500,000 in compensatory damages against ING and ReliaStar; $336,000 in compensatory damages against LPL; $4,972,800 against LPL and Royal Alliance; and unspecified amounts in disgorgement, punitive damages; and other relief.

Result

The Shamsians dismissed their claims against ReliaStar, Royal Alliance, and LPL. The arbitration then proceeded against ING only. The FINRA Panel subsequently granted ING's motion to dismiss pursuant to FINRA Rule 12206.

Other Information

ARBITRATORS: George L. Tindall, Robert E. Jenks.