E*Trade Ordered to Pay $38,226 to Customer for Pricing Error
A National Association of Securities Dealers (NASD) arbitration panel ordered E*TRADE Securities, Inc. (Nasdaq: EGRP – news) to pay a total of $38,226 to compensate customer Morgan Roach for investment related losses. Mr. Roach was represented by Aidikoff & Uhl, a Beverly Hills and Palm Springs, California law firm. According to Ryan Bakhtiari, who argued the case at the hearing, “The award is significant not because of the dollar amount, but because the panel ordered E*TRADE to pay damages that made Mr. Roach whole. Our client was awarded his attorneys fees and costs in addition to his investment losses.” The panel specifically found liability for attorneys fees according to language contained in the E*TRADE customer agreement.
At the arbitration, Mr. Roach proved that E*TRADE misstated the pricing of America Online (NYSE: AOL – news) options during AOL’s merger with Netscape. When Mr. Roach traded based on this erroneous information his account was wiped out and a debit balance was created. E*TRADE then sent Mr. Roach’s account to a collection agency and provided derogatory information to a credit reporting bureau. Fortunately, investors like Mr. Roach can turn to arbitration to resolve such disputes. “In making Mr. Roach whole, a message is being sent to E*TRADE,” according to Robert A. Uhl. “When firms make mistakes, regardless of whether they are full service brick and mortar types or internet based, they all have an obligation to act fairly when they deal with their customers.”
Aidikoff & Uhl represents investors who have lost money because of brokerage firms wrongful conduct and has, in the past, been responsible for recovering millions of dollars in losses for their clients.