![Lawsuits Filed Against JPMorgan, MF Global](/images/articles2/stock-fraud-stock-losses-article-2.jpg)
Meanwhile, lawsuits have been filed against Jon Corzine, former CEO of MF Global, alleging breach of fiduciary duty and negligence in the running of the bankrupt brokerage. According to Reuters (6/5/12), sorting out the missing $1.6 billion could take up to six years, and customers are not likely to recover all their losses.
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Stockbroker arbitration is a means of resolving disputes involving the financial industry. The Financial Industry Regulatory Authority (FINRA) oversees the arbitration process, in which both sides in the matter present their cases before a independent panel of arbitrators. The arbitration process is quicker than the courts, because FINRA arbitration decisions are usually final and binding and the losing side rarely has the opportunity to appeal the decision. Lawsuits, because of the lengthy appeals process, can take years to resolve.
Many financial firms include a clause in their investor contract requiring customers to file an arbitration rather than a lawsuit to resolve a dispute.