Winning Cases
Dobison v. Josephthal Lyon & Ross, Inc. and Rodney Sailor
The firm's client was
a small business owner from Louisiana who alleged that his
stockbroker fraudulently induced him to invest in two private
companies. Afterthe client lost his entire investment in both
companies, Brian Smiley represented Mr. Dobison in an arbitration
claim against the stockbroker and his brokerage firm. The
client contended that the individual broker and his firm were
liable for negligence, fraud, conversion, breach of fiduciary
duty and the sale of unregistered securities. The brokerage
firm contended that it was not liable because the broker had
not make it aware of the transactions and did not place the
investments through the firm. A hearing panel of the NASD
entered an award on behalf of the client in the amount of
approximately $2 million. More specifically, the panel ordered
both the firm and the broker to pay Mr. Dobison $651,201.00
for his losses, plus $329,664.00 for attorneys' fees and costs.
In addition, the panel ordered the broker to pay another $1
million in punitive damages. The award drew national attention,
including a Wall Street Journal article (March 13, 1997),
"Josephthal Lyon and
a Former Broker Are Ordered to Pay Almost $2 Million."
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