Investor Remedies Focus for 20th Annual UC Corporate Law Symposium

Twenty years ago, the U.S. Supreme Court altered the landscape for investors’ remedies when it held that brokerage firms could require customers to arbitrate all their disputes with their brokers. The 20th annual UC Corporate Law Symposium, "Twenty Years After

Shearson/American Express v. McMahon

: Assessing Investors’ Remedies," on March 30 will examine the impact that ruling has subsequently had on investor relations.

Co-sponsored by UC’s Corporate Law Center and its Law Review, the symposium will present a variety of speakers – representing regulators, the securities industry, the investors’ bar, and academia – who will assess the effectiveness of investors’ remedies for securities fraud and other forms of misconduct committed by corporate issuers, broker/dealers and mutual funds, both in arbitration and in court.

"These are issues of enormous importance. Today, in the United States, one-half of all households invest in the stock market, either directly or through mutual funds, and increasingly, Americans have to rely on their investments to finance their retirement," said Barbara Black, the Charles Hartsock Professor of Law and director, Corporate Law Center, at the UC College of Law.

One highlight of the program will be a roundtable discussion on the current state of securities arbitration, bringing together Catherine McGuire, associate director and chief counsel of the SEC’s Division of Market Regulation; Linda D. Feinberg, president of NASD Dispute Resolution; Joseph Borg, Alabama Securities Commissioner and president of the North American Securities Administrators Association; Philip M. Aidikoff, a practicing lawyer in securities arbitration and litigation and past president of the Public Investors Arbitration Bar Association; and Kenneth E. Meister, senior vice president and deputy general counsel of Prudential Equity Group.

This year’s program will be the first overseen by Black, who joined the faculty in August. She is a leading expert on issues of securities fraud and investors’ rights. At her previous position at Pace University, she founded and co-directed what is believed to be the first law school clinic to represent small investors in disputes with broker-dealers. She also co-directed the Pace Investor Rights Project, which sponsors advocacy, education and research efforts in the area of investor justice.

UC’s Corporate Law Symposium is sponsored by the law firm of Dinsmore & Shohl LLP.

The full agenda for the symposium includes:

8:45-9 a.m. — Welcome by Louis D. Bilionis, Dean & Nippert Professor of Law, University of Cincinnati College of Law

9 -10:30 a.m. — Panel 1:  Consumer Arbitration: The Fundamental Issue of Fairness

Consumer arbitration, including securities arbitration, has its supporters and detractors in the debate over the fairness of the process. Four recognized scholars present their views on this topic.

Moderator:  Jill Gross, Pace University School of law

Presenter:  Jeffrey Stempel, UNLV, Developing Fairness Protocols for the Era of Mass Arbitration

Presenter:  Edward J. Brunet, Lewis and Clark School of Law, Substantive Fairness in Securities Arbitration

Commentator:  Stephen J. Ware, Kansas School of Law

Commentator:  Jill Gross, Pace University School of Law

10:30-10:45 a.m. — Break

10:45 a.m. -12:15 p.m. — Panel 2: Investors’ Remedies: Arbitration and Litigation

While investor-broker disputes go to arbitration, other investors may have judicial remedies.  This panel explores how investors are faring in the courts.  Professor Bullard explores remedies against investment fund managers.  Professor O’Hare analyzes the state of investors’ remedies after Merrill Lynch, Pierce, Fenner & Smith v. Dabit (U.S. 2006).

Moderator: Barbara Black, University of Cincinnati College of Law

Presenter: Mercer E. Bullard, University of Mississippi School of Law, Mutual Fund Shareholder Claims: All Bark, No Bite

Presenter: Jennifer A. O’Hare, Villanova University School of Law, The Retail Investor and the Anti-Fraud Provisions of the Federal Securities Law

Commentator:  Barbara Black, University of Cinicnnati College of Law

12:15-1:30 p.m. — Lunch

1:30-3:45 p.m. — Roundtable:  The Current State of Securities Arbitration

The securities arbitration process has changed dramatically in 20 years and continues to do so. In recent months, the SEC approved NASD Regulation’s rewrite of its Code of Customer Arbitration to make it more user-friendly, and other revisions may be forthcoming. In addition, the expected merger of the regulatory arms of NASD and NYSE means that there will be one SRO arbitration forum. The panelists discuss the implications of these and other developments and answer questions from the audience.  

Catherine McGuire, Associate Director and Chief Counsel, Division of Market Regulation, SEC

Linda D. Fienberg, President, NASD Dispute Resolution

Joseph Borg, Alabama Securities Commissioner and President, North American Securities Administrators Association  (or his representative)

Philip M. Aidikoff, Esq., Aidikoff, Uhl & Bakhtiari, Beverly Hills, CA

Kenneth E. Meister, Senior Vice President and Deputy General Counsel of Prudential Equity Group, LLC

3:45-4 p.m. — Closing Remarks by Barbara Black, University of Cincinnati College of Law