January 21, 2018

Recent Result: Victory for the Respondent on a $493 Million Claim in a 37-day AAA Securities Arbitration. In Addition, Respondent Recovered $2 Million from Claimants

Keesal, Young & Logan shareholders Terry Ross, Michele Underwood and Stacey Garrett obtained a defense award in a 37-day securities arbitration conducted before the American Arbitration Association in which the claimants sought $293 million in compensatory damages and another $200 million in punitive damages.  The claim involved hundreds of exchange-traded securities, new issues, margin transactions, variable forward purchase contracts and over-the-counter collars.  The presentation of evidence included testimony from 28 witnesses from four different states (some of whom testified by videoconference), more than 1,000 exhibits and extensive written briefs.  Ultimately, the arbitrators unanimously found in favor of the respondent, Citigroup Global Markets Inc. on all claims.  Additionally, after the arbitration, the claimants paid Citigroup $2 million in attorneys’ fees.  The result was reported by the Daily Journal’s “Verdicts & Settlement” column and labeled a “Top Verdict” (linked here), and also was reported by the Securities Arbitration Commentator (linked here) and Arb Reporter (linked here).  Kosti & Marian Shirvanian, individually and as Trustees of the Kosti Shirvanian and Marian Shirvanian Living Trust v. Citigroup Global Markets Inc. (f/k/a Salomon Smith Barney), AAA Case No. 72-168-Y-00004-04 NOLG (10/27/2017).