Facts

Claimant Rivette Family Trusts filed an arbitration claim against respondent Wells Fargo Advisors Financial Network in relation to various investments, including Comstock Capital Value Fund, Proshares Short Russell 2000 Non-Traditional ETF, Proshares Short S&P 500 Total, Proshares Short (Nasdaq) QQQ, and Grizzly (Bear Market) Short Fund.

CLAIMANT'S CONTENTIONS: Claimant asserted causes of action for breach of fiduciary duty, respondeat superior, suitability, failure to supervise, elder abuse, and violation of California Corporations Code Section 25401 against respondent. Claimant sought compensatory damages based upon what a suitably invested account would have earned as contrasted with claimant's account, or alternatively any other reasonable measure of damages. Claimant also sought interest, disgorgement and restitution of all earnings, profits, compensation and benefits received by respondent, rescission of the wrongfully purchased securities, return of the purchase price, punitive damages, and attorneys' fees and costs.

RESPONDENT'S CONTENTIONS: Respondent denied the allegations and requested dismissal of the claims in their entirety. Respondent also requested all costs and fees be assessed against claimant. Respondent sought expungement of the Forms U-4, Central Registration Depository records and RE-3s of unnamed party Thomas North, along with the records of other current or former employees of respondent whose regulatory records may reflect claimant's allegations.

Damages

Claimant sought a total of $4,847,083.

Result

The panel denied claimant's claims in their entirety, and denied respondent's expungement request for unnamed party Thomas North.

Other Information

ARBITRATORS: Gary Kostow, presiding chairperson; Kathryn J. Toronto; Ranjani Mohana