Curriculum Guide · Courses

Professor Steve Varholik

LL.M Seminar 860 (cross-listed) | 2 credit hours

Many public investors are surprised to learn that they do not have a right to litigate disputes with their brokers in court. Instead, arbitration is the vehicle through which the vast majority of individual American investors vindicate their rights under the securities laws. This seminar examines the history and practice of securities arbitration in the United States. Students will learn how broker-dealers resolve controversies with their customers and employees through arbitration and other alternative dispute resolution mechanisms sponsored by Self-Regulatory Organizations (“SROs”). The course will also examine how securities arbitration is used in the context of intra-industry and cross-border disputes. This seminar will review the substantive law and SRO rules that apply to broker-dealers that deal with public customers and will also review step-by-step the securities arbitration process from the filing of a claim through a “mini-trial,” presided over by one to three panelists. Current issues will also be discussed.

While I have provided many reading materials for the course, the majority of these materials are for reference only. Students will have the option of downloading the entire set of course materials or printing off only the assigned readings from a CD containing all of the course materials which I will provide to each student at our first meeting. The syllabus is divided into required reading and recommended reading. Each week I will evaluate the required reading and make adjustments to ensure that the assignments are manageable and appropriate to facilitate interesting and relaxed class discussions.

Note for J.D. Students only: Completion or concurrent enrollment in Securities Regulation is strongly recommended.