Financial Services Litigation
From financial service providers to institutional and individual customers, we represent the full spectrum of clients in financial services litigation. Tonkon Torp’s financial services litigation experience covers a broad range of disputes, including:
  • Broker-dealer arbitrations
  • Investment adviser disputes
  • Claims arising from transactions undertaken by investment funds
  • Enforcement efforts by both governmental and non-governmental regulators
For advice and transactional services in this area, clients turn to our Financial Services & Investment Management team.

Our representative matters include:
  • Representing a local investment management firm in a dispute with a Los Angeles-based finance company concerning a structured finance transaction. The opponent sought more than $20 million in compensatory damages plus additional punitive damages, alleging fraud and breach of contract. We not only successfully defended against those claims, but won more than $1.8 million for our client for related counterclaims.
  • Defending in arbitration a local, family-owned securities brokerage against claims of unauthorized and unsuitable trading.
  • Resolving a FINRA-initiated complaint against a local broker-dealer accused of violating rules regarding publication of research reports and trading during blackout periods.
  • Resolving state regulators' claims of violations against managers of an investment fund related to exemptions from registration and investor accreditation.
  • Pursuing claims for churning, unsuitability, and failure to supervise against a national brokerage firm.
  • Defending investigations and responding to subpoenas from regulatory agencies and third-parties, including on behalf of individual directors and executives, as well as financial services firms.

Confidential

(Multnomah County Circuit Court) – Successfully represented local investment management firm in dispute with a Los Angeles based finance company concerning a structured finance transaction. The opponent sought more than $20 million in compensatory damages plus additional punitive damages, alleging fraud and breach of contract. Successfully prosecuted Client's damages claims for more than $1.8 million for breach of contract and non-payment of note obligations.

Confidential

(NASDR Arbitration) – Achieved a favorable result in arbitration in the defense of a local, family-owned securities brokerage against claims of unauthorized and unsuitable trading.

PEBB v. OHSU

Successfully pursued Oregon Health & Science University’s right to recover a proportionate share of approximately $25 million, including interest, received by the state from the 1999 demutualization of Standard Insurance Company. (Marion County Circuit Court/Oregon Court of Appeals)

Elder Abuse Prevention and Prosecution Act

We previously talked about recent changes to Oregon law and FINRA rules relating to elder abuse prevention and the prosecution of financial services companies for noncompliance. This article focuses on The Elder Abuse Prevention and Prosecution Act…
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Vulnerable Person Abuse Protections Coming to FINRA in 2018

Similar to the Oregon legislature's recent changes to ORS Chapter 59, intended to protect "vulnerable persons" against financial exploitation, FINRA has implemented changes to its rules effective February 5, 2018, intended to protect "specified adult…
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SEC's Office of Compliance Inspections and Examinations Priorities for 2018

On February 7, 2018, the Security and Exchange Commission's Office of Compliance Inspections and Examinations announced its 2018 examination priorities. For 2018, OCIE's priorities fit into five broad categories.
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New “Financial Abuse” Mandatory Reporting Requirements for Oregon Investment Adviser Representatives

Effective January 1, 2018, Oregon's securities regulation laws started imposing a mandatory reporting requirement in certain circumstances on "qualified individuals"—including investment adviser representatives—to protect "vulnerable persons" from…
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Investment Adviser Update: Revised Form ADV Began October 1st

Effective October 1, 2017, investment advisers must adhere to amended requirements regarding the investment adviser public disclosure form (Form ADV). The Securities Exchange Commission (the SEC) announced these amendments in 2016. The new Form ADV…
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DOL Fiduciary Rule Delayed for 60 Days

Today, April 7, 2017, the Federal Register published the U.S. Department of Labor's (DOL) final rule extending the applicability date of the ERISA Fiduciary Rule from April 10, 2017 to June 9, 2017. A copy of the final rule is available here. Other…
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Temporary Guidance for Fiduciary Rule Compliance

On Friday, March 10, 2017, the Department of Labor (DOL) issued a field assistance bulletin (FAB) adopting a temporary enforcement policy regarding compliance with the ERISA Fiduciary Rule. The ERISA Fiduciary Rule is set to go in effect on April 10…
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Fiduciary Rule's Status Uncertain

On Friday, February 3, 2017, the President signed an executive order requiring the re-examination of the final Fiduciary Rule (81 Fed. Reg. 20946 (April 8, 2016)) set to go into effect on April 10, 2017. The Fiduciary Rule, which was the subject of…
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DOL Major Changes to Fiduciary Investment Adviser Definition and Prohibited Transaction Exemptions - Part 3

On April 6, 2016, the U.S. Department of Labor (the "DOL") issued final regulations expanding the definition of who is a fiduciary and what constitutes fiduciary advice to ERISA-covered employee benefit plans, as well as a new fiduciary adviser…
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Major Changes to DOL Fiduciary Investment Adviser Definition and Prohibited Transaction Exemptions

On April 6, 2016, the U.S. Department of Labor (the "DOL") issued final regulations redefining fiduciary investment advice for ERISA-covered employee benefit plans and individual retirement accounts ("IRAs"). The final rule significantly expands the…
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Christopher  Pallanch
Practice Area Chair

Christopher Pallanch

Partner