Silverman v. Morgan Keegan & Company, Inc.

(Client: Morgan Keegan)

The Firm won a significant for a major broker-dealer client in the United States Court of Appeals for the Fourth Circuit. For several years now, the Firm has been arguing for the client in courts across the country that investors who purchased shares of certain high-yield bond funds from other brokerage firms must litigate rather than arbitrate their claims against the client. The high-yield bond funds in question imploded in late 2007. The investors in the case argued that they were customers of the Firm’s client (and therefore entitled to arbitrate against the Firm under FINRA rules) for two main reasons: because the client was the underwriter of the funds they bought and because FINRA rules state that a “customer” is “not a broker or dealer,” which the investors weren’t. The Fourth Circuit carefully considered and rejected all of the investors’ arguments, relying on the reasons provided in the firm's briefs. George C. Freeman, III, argued the case in the Fourth Circuit. Jamie L. Berger and David N. Luder helped devise the winning strategy and draft the briefs. 

Silverman v. Morgan Keegan & Company, Inc., No. 12-1208 (4th CCA)