Catalog

Provides hands-on lawyering experience in the area of securities arbitration. This 6-credit course will extend over two consecutive semesters (4 credits in the fall, 2 credits in the spring). Under faculty supervision, students are assigned to work on real disputes between individual small investors/customers and their brokers. Students represent customers who have lodged complaints against their brokers through the arbitration divisions of securities industry Self-Regulatory Organizations (SROs), such as the Financial Industry Regulatory Authority (FINRA), or the New York Stock Exchange (NYSE). The clinic offers students a unique opportunity to develop lawyering skills while assisting individuals unable to obtain legal representation in pursuing their complaints. In the first semester of the clinic, students attend a weekly classroom seminar, which focuses both on the relevant substantive law (aspects of securities law as well as federal and state law governing arbitration) and on lawyering skills. Through a combination of case work, seminar sessions and individual meetings with clinic faculty, students develop basic lawyering skills including interviewing, case theory development, fact investigation and analysis, counseling and negotiation. They are assigned written and/or oral exercises, including elements of a simulated arbitration. Teaching techniques include problem analysis, simulations, videotaping with feedback. In the clinic itself, students work in two-person teams, as assigned by the professors. Over two semesters, they represent their individual clients through the arbitration process, from the initial client interviews through the final week with a professor to discuss their cases. Students must commit to regularly scheduled office hours, when they can meet and work with their partners and case supervisors. Students should expect to spend an average of 12 hours per week on clinic case work both in the fall and in the spring semesters, in addition to seminar preparation. Grades are based on a combination of factors, including class performance in the seminar, performance on the written/oral exercises and simulations, and work in representing clients. There is no final examination. Enrollment is limited. No more than 14 placement credits may count toward the J.D.

Corequisite: Corporations. Securities Regulation, although not a prerequisite, is recommended.

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****Securities Arbitration Clinic In The News****

Students from the Law School’s Securities Arbitration Clinic won the top prize for most outstanding arbitration team at the Securities Dispute Resolution “Triathlon,” held on October 17–18, 2009 at St. John’s University School of Law. The competition consisted of individual mock negotiation, mediation, and arbitration rounds based on a hypothetical customer/broker dispute. Fourteen teams from 12 different law schools participated in the event, which was co-sponsored by St. John’s University School of Law and the Financial Industry Regulatory Authority (FINRA). New York Law School was represented by Melody Behnam 2L, Adam Jason 3L, and Olha Kolisnyk 3L, all of whom walked away with gold medals. The team was coached by Professor Howard S. Meyers, Co- director of the Securities Arbitration Clinic, and Jennifer McCallion 3L, a participant in last year’s Clinic. Click here for the flyer.

On September 14, 2009, Professor Howard S. Meyers, Co-Director of New York Law School's Securities Arbitration Clinic, introduced New York State Comptroller Thomas P. DiNapoli at a press conference held at New York Law School to announce the launch of a new financial advocacy website titled "yourmoneynewyork.com." To watch the video click here.
On December 3, 2008, the Securities Arbitration Clinic was interviewed by Channel 7, Eyewitness News, highlighting the clinics work with the greater New York City community. To watch the video click here.

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****Most common investor problems****

Problem: My broker recommended investments that don’t seem to match my means or investment goals, and now I’ve lost money.
Analysis: This is called unsuitability. When a broker makes a recommendation, he or she must make sure the investment fits in with your investment goals. In particular, the broker must consider how risky an investment is based on your individual circumstances.

Problem: My broker has been buying and selling a lot of my investments, and I’m concerned about this increase in my account activity.
Analysis: When a broker makes excessive trades, it is called churning. Your broker likely collects commission, so the more trades he makes, the more money he earns.

Problem: My broker bought or sold an investment without consulting me first.
Analysis: This is a case of unauthorized trading. It involves a sale or purchase of securities without the investor’s prior knowledge and authorization. These transactions often involve existing assets in the account and do not require client payment. For example, an existing asset may be sold to buy a new security.

Problem: When making a recommendation, my broker made a statement that I later found out to be false, or left out a very important fact.
Analysis: This is called misrepresentation. It occurs when a broker makes false representations or omissions of material fact about an investment.

WAYS TO AVOID THESE PROBLEMS

Read Carefully. Thoroughly read your monthly account statements, confirmations, and other information you receive about your investments. Save any documents you receive from your brokerage firm.
Ask questions. Immediately question any transaction that you do not understand or did not approve. If you are not satisfied with your broker's response, contact the firm's branch manager or compliance department.
Be skeptical. Beware of sales pitches that make exaggerated claims about the expected profitability of an investment, or make specific price predictions, such as, “your money will double in six months,” especially if dealing with a broker who is new to you. If it sounds too good to be true, it usually is.
Take your time. Do not let a broker pressure you to invest quickly to avoid missing out on a “once in a lifetime opportunity.” Investment decisions should be made only after deliberation and thought, and with the benefit of all the relevant facts. Take the time to learn them. Be suspicious of any broker who uses high-pressure sales tactics.
Do your own research. Don’t take your broker’s word for it—check it out for yourself! Research stocks, bonds, and other investments on your own.

Course Description

Event & Master Classes

Selecting Your Broker

Contact The Clinic

Professor Howard S. Meyers
Director of Securities Arbitration Clinic
New York Law School
57 Worth Street, Room C301
New York, NY 10013
(212) 431-2338
(212) 431-1830 (fax)