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The problem is that the potential arbitrators are trusted to volunteer their own possible conflicts of interest.
But Montgomery's lawyers have contended that the evidence is inconclusive and unauthentic and that reports of the case could be tainting potential arbitrators.
In addition, the parties can look on FINRA's Web site and read all the awards rendered by these potential arbitrators.
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FINRA provides the parties with a resume and brief biography for each potential arbitrator.
For investor advocates, the potential for conflicts among arbitrators ranks high on the list of arbitration problems.
Lawyers for brokerage firms in these cases should be required, he said, to investigate potential conflicts among the arbitrators selected for a panel.
In a so-called arbitrator disclosure report, potential panelists list their background, education and training and other information, like lawsuits filed against them.
George Friedman, executive vice president of dispute resolution at Finra, said the authority had stepped up its efforts to remind arbitrators to disclose any potential conflicts.
Mr. Klayman noted that in a recent case involving Wells Fargo Investments, the firm's lawyers notified Klayman & Toskes before arbitrator selection that one potential panelist should not be a candidate in the case as she is a Wells Fargo employee.
A1 BUSINESS DAY C1-18 WorldChallenged ChAllenged A WorldCom shareholder, who lost a $900 million securities arbitration against Citigroup, is asking a federal court to overturn the decision, alleging in a lawsuit that an arbitrator failed to disclose a potential conflict of interest.
But one matter that will not go away is the potential damages the players could seek if the arbitrator, Shyam Das, finds that contraction is a mandatory subject for bargaining, as the union contends.
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