Form U5 defamation cases are on the rise, with a reported 24% increase over the filing period from 2019 to 2020.
In 2020, Form U5 defamation cases were the fourth most common intra-industry claim filed with FINRA Dispute Resolution, behind breach of contract, promissory notes, and compensation claims.
See Statistics from FINRA Dispute Resolution.
Meanwhile, claimants’ attorneys and others who would like to make it harder for brokers to clean up their Form U5 are lobbying to shrink the amount of time you have available to you to get this done. Generally speaking, you have a 6-year time limit at FINRA to remove untrue and/or misleading information from your record, including customer complaints that should not be there, and possibly defamatory information placed on your U5 by previous employers. Sometimes what seems innocuous can actually hinder your chances of getting a job with the firm you would rather work for.
Don’t sit on your rights and let more time pass when you can have a cleaner U5.
When in doubt, consult a qualified Form U5 attorney about your record. Reach out to the Law Offices of Christopher H. Tovar, PLLC and we’ll see what we can do for you.
