Keesal, Young & Logan shareholders Neal Robb and Esther Cho obtained a defense award in an arbitration before the American Arbitration Association that spanned nearly 7 years of litigation.  The main Claimant, a CPA, had been the partner and a client of Respondent’s former broker who was ultimately sentenced to federal prison for acts related to those alleged in the Statement of Claim.  The claims involved allegations of fraud in connection with penny stocks, including stocks involved in pump and dump schemes, and conversion.  Respondent out-maneuvered the Claimant early on in the litigation by entering into a favorable settlement with former clients of both the broker and the Claimant which included an assignment of whatever claims they held against the main Claimant.  In response to the Statement of Claim, which ultimately sought around $8.5 million in damages, Respondent asserted counterclaims based on the assigned claims, equitable indemnification, and tort of another attorneys’ fees.  The arbitration hearing lasted for 36 ½ days, consisted of thousands of exhibits, 26 witnesses, and extensive written briefs.  The Panel ultimately awarded damages to both the Claimant and Respondent, but Respondent’s award completely zeroed out and exceeded Claimant’s award, leading to a net recovery to Respondent in the amount of $4.1 million.