Tr?id=566623520170033&ev=PageView&noscript=1

Florida FINRA Arbitration Panel Orders Charles Schwab to Pay $3.8 Million to Investors

Posted on April 1st, 2026 at 12:28 PM
Florida FINRA Arbitration Panel Orders Charles Schwab to Pay $3.8 Million to Investors

From the desk of Jim Eccleston at Eccleston Law

A Financial Industry Regulatory Authority (FINRA) arbitration panel has ordered Charles Schwab & Co. to pay approximately $3.8 million to 13 investors after finding liability related to investment recommendations involving structured products and complex exchange traded funds, according to ThinkAdvisor.

The arbitration panel convened in Jacksonville, Florida. As ThinkAdvisor reports, the award requires Schwab to pay $3,223,666 in compensatory damages, $532,455 in prejudgment interest, and $77,509 in costs.

The claimants asserted several causes of action, including breach of contract, breach of fiduciary duty, professional negligence, and unjust enrichment. According to the arbitration award cited by ThinkAdvisor, the investors alleged that Schwab substantially concentrated their accounts in unsuitable investments.

The disputed holdings included complex structured products, nontraditional and leveraged exchange traded funds, and proprietary exchange traded funds. The claimants argued that these investment strategies did not align with their financial circumstances and risk tolerance.

The claimants also alleged that Schwab knew or should have known that the investments and strategies used in their accounts were misrepresented, according to the arbitration award cited by ThinkAdvisor.

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

Tags: eccleston, eccleston law, finra arbitration, charles schwab, securities law, investor disputes, securities arbitration

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

This was the best of all possible outcomes and I cannot thank you and the team enough.

Michael S.

LATEST NEWS AND ARTICLES

1778601835 Law
May 12, 2026
UBS Shifts SMA Oversight In-House, Discloses Potential Conflicts

UBS Wealth Management USA has begun restructuring how it manages separately managed accounts ("SMAs"), moving key oversight functions in-house and aligning its model more closely with competitors, according to reporting by AdvisorHub.

1778521728 Law
May 11, 2026
Private Credit Funds Face Rising Redemptions and Valuation Scrutiny

Investor pressure on private credit funds continues to intensify as redemption requests increase and concerns emerge over how firms value underlying loan portfolios.

1778517375 Law
May 11, 2026
SEC Reports Decline in Enforcement Actions as Leadership Refocuses on Investor Harm

The U.S.