Skip to content

Guerra & Partners


Guerra & Partners Prevails On FINRA Eligibility Motion

On April 5th, shareholder Ailen Cruz successfully argued a Motion to Dismiss based on eligibility in a FINRA customer arbitration.  Although FINRA arbitration rules prohibit time-barred claims from proceeding in arbitration, arbitrators have been conspicuously less inclined to dismiss ineligible claims in recent years due  – in part – to increasingly creative pleadings and arguments from claimants that are designed to avoid dismissal.  Nevertheless, Ms. Cruz successfully argued that all but two investments at issue were ineligible for submission to arbitration because they were purchased outside of the six-year eligibility period.  After hearing from Ms. Cruz, the arbitrators correctly and unanimously determined that eligibility in this matter should be measured from the investment purchase date, and that there were no other events or occurrences giving rise to the claims. As a result of this decision in favor of the broker-dealer, the claimants have decided to withdraw their remaining claims from FINRA arbitration.  The firm is thrilled to have obtained this favorable outcome for its client, especially in light of the ever increasing difficulty of succeeding on eligibility motions in FINRA arbitration.

For more information, contact Ailen at