Punitive Damages Win In Securities America/Medical Capital Case Big Victory For Claimants
A recent $1.2 million investor award involving Securities America and sales of Medical Capital Holdings could bode well for future similar claims in that the arbitration panel took the unusual move to also hold Securities America solely liable for $250,000 in punitive damages.
Punitive damages are typically not present in most awards made by arbitration panels of the Financial Industry Regulatory Authority.
“This is a powerful win for the claimants,” said one plaintiff’s attorney in a Jan. 9 Investment News story. “The punitive damages awarded in this decision show that the three arbitrators were “shocked” by Securities America’s action involving Medical Capital notes,” the attorney said in the article.
The latest legal decision against Securities America occurred Dec. 31, 2010. The claimant in the case, Josephine Wayman, also sued Securities America representative Randall Ray Talbott.
According to the Broker Check Web site of FINRA, Talbott has 11 other pending customer disputes involving sales of Medical Capital private placements
As in other investor complaints against Securities America and its sales of Medical Capital notes, Wayman’s case involved allegations of fraud, deceit, intentional misrepresentation of fact and financial elder abuse.
Moving forward, Securities America can expect to face more legal claims from clients who lost big on sales of Medical Capital private placements. In addition, the broker/dealer still must deal with fraud charges filed by securities regulators in Montana and Massachusetts over sales of Med Cap investments.
If you suffered investment losses in Medical Capital notes sold by a Securities America representative, please contact us. A member of our securities fraud team will help you determine if there is a viable claim for recovery.