FINRA Decision

In dismissing Claimants’ case, the sole FINRA Arbitrator characterized Claimant Harris-Kimball as a self-directed investor who chose to buy BCIT. To the extent that the customer sustained any damages, the Arbitrator rejected any allegations that the cause of such losses was the result of any wrongful conduct by Respondent Scottrade. The Arbitrator explained that:

Respondent is not willfully refusing to deliver the shares. It cannot deliver the BCIT shares because of the actions of a third party, the Depository Trust & Clearing Corporation [DTCC], which placed a “global lock” on BCIT, shares on August 16, 2005. The global lock means that the subject shares are not eligible for delivery, transfer or withdrawal by any person or entity.

The Scottrade Agreement specifically provides that Respondent will not be liable for any loss caused directly or indirectly by suspension of trading of a stock such as that of BCIT.

http://www.brokeandbroker.com/1077/bcit-scott...bitration/