Some of the most common allegations made in these claims were:
- unsuitable recommendations
- failure to supervise
The 2001 statistics show that 7,088 new claims were filed, up from 5,725 in 2000. Of the 7,088 cases, 6,915 were filed as arbitration claims and an additional 173 began as mediations. The number of claims involving mutual funds increased by more than 100% over the previous year.
In cases brought by investors, arbitrators awarded damages in 2001 totaling $97 million, $15 million of which was for punitive damages, compared to $76 million and $21 million, respectively, in 2000.
However, more than 60% of all claims were resolved between the parties before reaching an arbitration award.
In 2001, the mediation forum closed 1,262 cases with 77% of the cases reaching an agreement.
NASD Dispute Resolution, Inc. is the largest securities dispute resolution forum in the world.
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