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Home / Courts / 4th Circuit / Contract – Investors Not ‘Customers’ for FINRA Arbitration (access required)

Contract – Investors Not ‘Customers’ for FINRA Arbitration (access required)

Raymond James Financial Services Inc. v. Cary Investors who purchased allegedly fraudulent securities directly from a business on the recommendation of a lawyer who was working with a broker for a financial services company were not “customers” of the company entitled to FINRA arbitration; the 4th Circuit says that to compel arbitration in this case, in which the investors did not buy from the financial services company, would expand the scope of the arbitration agreement beyond what the text permits and the parties intended.

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