The veteran defense attorney is also expecting to see an increase in arbitration filings regarding non-traded REITs (real estate investment trusts) and other illiquid investments.
“We do anticipate that more claims will be filed over illiquid investments—and regardless of whether these investments have actually declined in value, investors who have lost their jobs or small businesses may have a sudden and unanticipated need for these funds and may be frustrated when reminded that these funds are illiquid,” Hetzel said.
PIABA attorneys are also trying to “opportunistically” assert claims regarding the use of margin in customer accounts; failure to execute claims; failure to supervise claims; and related claims that broker-dealers did not have effective business continuity plans (BCPs) in place, Hetzel added.