Overview
FINRA saw several unusually large compensatory awards in 2024, reflecting heightened disputes over unsuitable investments, misrepresentation, complex product risk, and wrongful termination claims. While a handful of cases dominated the year in dollar terms, the data also reveals clear patterns in who wins, which firms appear most often, and what fact patterns drive the biggest results.
Below is a breakdown of the top 10 largest compensatory awards in 2024, followed by insights and analysis that matter to litigators, compliance teams, and industry observers.
Top 10 Largest Awards — 2024 Leaderboard
Largest Compensatory Awards in 2024
Rank | Award | Case | Claimant(s) | Respondent(s) |
|---|---|---|---|---|
| 1 | $14,641,827 | 22-01229 | Boustead Securities | EBET |
| 2 | $11,520,298 | 23-01164 | First Republic | Steven Harlen Levine |
| 3 | $9,783,242 | 22-02586 | Doug Austin, et al. | SW Financial |
| 4 | $8,000,000 | 20-03738 | Galbreath, et al. | Northwestern Mutual, et al. |
| 5 | $7,342,000 | 22-02737 | Rosenau Family Research Foundation, et al. | Principal Securities |
| 6 | $6,071,847 | 20-02507 | Cinda Collins | RBC Capital Markets |
| 7 | $5,583,389 | 17-02682 | Morgan Stanley | Michael Frank Paesano |
| 8 | $5,039,403 | 23-03265 | Morgan Stanley | Federico Cardona |
| 9 | $4,404,409 | 22-02449 | Robert W. Baird & Co. | Raymond James, et al. |
| 10 | $4,244,956 | 22-00037 | Wells Fargo Clearing Services | Joseph Seidler |
Deep Dive Into the Three Largest Awards
1. Case 22-01229 : $14,641,827
Claimant: Boustead Securities
Claimant Counsel: Eric Berg (Berg Law Group), Joseph D. Wilson & Steven R. Aquino (Bevilacqua)
Respondent: EBET
Arbitrators: Joseph C. Watson, Richard Maurice Robinson, Michael Craig Ditty
Nature of Dispute: Member vs. Non-Member
Summary:
This was the largest compensatory award in FINRA arbitration in 2024. The dispute centered on breach of contract, quantum meruit, failure to pay success fees, and breach of right of first refusal.
2. Case 23-01164 : $11,520,298
Claimants: First Republic
Claimant Counsel: Leonard Weintraub & Katherine Harrison (Paduano & Weintraub)
Respondent: Steven Harlen Levine
Arbitrators: Robert Lawrence Ostrov, Mark H. Schiff, Ronald Howard Filler
Nature of Dispute: Terminated Member and Non-Member vs. Associated Person
Summary:
This employment-related dispute involved allegations of breach of contract, unjust enrichment, and money had and received by the claimants, while the respondent countered with claims of constructive termination, breach of contract, unpaid deferred compensation, fraud, negligence, FINRA Rule 2010 violations, conspiracy, and even RICO violations.
3. Case 22-02586 : $9,783,242
Claimant: Doug Austin, et. al. (41 total customer claimants)
Claimant Counsel: Jonathan E. Neuman (Law Offices of Jonathan E. Neuman)
Respondent: SW Financial
Arbitrators: David Aaron DeSoto, Brucus Owdley, Nile Bailey Copeland
Nature of Dispute: Customer vs. Member
Summary:
The causes of action related to Claimants’ allegation that Respondent and its representatives used Claimants’ accounts as personal slush funds, engaging in egregiously unsuitable trading, garnering over $4.5 million dollars in commission and fees while costing nearly all of Claimants out-of-pocket losses of over $6 million dollars. Official allegations were for unsuitability, breach of fiduciary duty, breach of contract, negligence, unjust enrichment, strict liability, and failure to supervise.
Understanding the Data
Largest Compensatory Awards of 2024
Methodology
This analysis includes all FINRA arbitration awards with an award date between January 1, 2024 and December 31, 2024 (inclusive). We calculated compensatory awards as the total net amount awarded to the prevailing party, excluding attorney fees and costs, punitive damages, interest, and FINRA fees.
To determine the average award shown in the chart above, we filtered to cases where at least $1 of compensatory damages was awarded, then calculating the mean, finding an averaeg award of $776,074.22. For those keeping score, that means the largest award of 2024 was 19x the average.
Cases 4–10: Quick Summaries
4. Case 20-03738 : $8,000,000
Claimant Counsel: Marc Seldin Rosen (Law Offices of Marc Seldin Rosen)
Arbitrators: John James McGovern Jr., Dolores E. Trojak, Peter John Maurice Forbes
Dispute: Associated Person vs. Member and Associated Person (U5 defemation and wrongful termination)
5. Case 22-02737 : $7,342,000
Claimant Counsel: Donald R. McNeil, Elizabeth Ridley Scott (Heley Duncan & Melander), Ryan T. Deschene (Larson King)
Arbitrators: Leo G. Stern, Jeffrey W. Jacobs, Joseph Darwin Kenyon
Dispute: Customer vs. Member (Securities Exchange Act violations, FINRA rule violations, fraud, breach of fiduciary duty, negligence)
6. Case 20-02507 : $6,071,847
Claimant Counsel: Joseph W. Anthony & Cory D. Olson (Anthony Ostlund Louwagie Dressen & Boylan)
Arbitrators: Nathaniel Cade Jr., Kevin D. Hofman, Jo Anne F. Lewellen
Dispute: Associated Person vs. Member (discrimination, defamation, and unjust enrichment)
7. Case 17-02682 : $5,583,389
Claimant Counsel: Tracy L. Gerber, Jennifer Tomsen, Hiba Kazim (Greenberg Traurig)
Arbitrators: Howard Alan Grinsberg, Aubrey Lees, Julia Kunina-Malladi
Dispute: Member and Non-Member vs. Associated Person (breach of promissory notes and breach of contract)
8. Case 23-03265 : $5,039,403
Claimant Counsel: Elizabeth E. Moum & Tracy L. Gerber (Greenberg Traurig)
Arbitrators: Langfred W. White
Dispute: Member and Non-Member vs. Associated Person (breach of promissory notes, respondent did not participate)
9. Case 22-02449 : $4,404,409
Claimant Counsel: Arthur Boylan, Shannon Awsumb, Vincent D. Louwagie (Anthony Ostlund Louwagie Dressen & Boylan)
Arbitrators: Jane C. Carney, Alan Barry Cohen, David H. Marx
Dispute: Member vs. Member and Associated Person (protocol violations, breach of contract, tortious interference, misappropriation of trade secrets)
10. Case 22-00037 : $4,244,956
Claimant Counsel: Timothy N. Will (Albert & Will)
Arbitrators: D. Peter Gleichenhaus, Enrique Colin, Meredith F. Hoffman
Dispute: Member vs. Associated Person (breach of promissory notes and failure to repay note balances)
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Disclaimer: This blog post is based on publicly available FINRA arbitration award data. While we strive for accuracy, party names, attorney names, and award details should be independently verified for case-specific research. Award amounts may include offsets or adjustments not immediately apparent from award documents. This content is for informational purposes only and does not constitute legal advice.