Fidelity Ordered To Pay Options Trader $4 Million

Posted on May 25th, 2023 at 1:15 PM
Fidelity Ordered To Pay Options Trader $4 Million

From the desk of Jim Eccleston at Eccleston Law 

Financial Industry Regulatory Authority (FINRA) arbitrators have recently ruled in favor of an options trader, ordering Fidelity Brokerage Services to pay nearly $4 million in damages. This decision stems from allegations of mishandling transactions in a margin account, resulting in significant losses for the trader.

The investor claimed that Fidelity's actions violated his options contract, and also alleged intentional and negligent misrepresentation and breach of good faith and fair dealing, according to InvestmentNews.

According to the investor, “Fidelity and NFS were liable for failing to honor its portfolio margin representations and for improperly liquidating his account.” The investor had sought $8.5 million in damages, interest, attorneys' fees, and punitive damages. However, the arbitrators denied all damages except for the compensatory damages that were awarded.


Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory and disciplinary matters.

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