Mealey's Banking & Finance - Panel Sends Auction-Rate Securities Arbitration Ruling Back To District Court

Mealey's Banking & Finance - Panel Sends Auction-Rate Securities Arbitration Ruling Back To District Court

SAN FRANCISCO - In a split opinion, a Ninth Circuit U.S. Court of Appeals panel on March 31 reversed and remanded a federal district court's ruling that a city's filing of claims against its underwriter of auction-rate securities (ARSs) with the Financial Industry Regulatory Authority (FINRA) was appropriate, ruling that the forum selection clauses located in the parties' broker-dealer agreements supersede "any right to FINRA arbitration" (Goldman, Sachs & Co. v. City of Reno, No. 13-15445, 9th Cir.; 2014 U.S. App. LEXIS 5894).

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