Osaic Wealth, Inc. has taken legal action to prevent a group of defendants from improperly pursuing claims against it in a FINRA arbitration. On December 9, 2024, Osaic Wealth filed a complaint in the United States District Court for the Northern District of Illinois against Christopher Ambrose, Jean Ambrose, Gwen Gorman, Robert Gorman, Thomas Harrold, Carl Pedigo, and John Stratton.
The case centers around allegations made by the defendants that certain investments recommended by individuals associated with Osaic were unsuitable. These investments include those in the oil and gas industry and companies where one of the advisors held an interest. The defendants are attempting to arbitrate these claims through FINRA (Financial Industry Regulatory Authority), which Osaic argues is inappropriate because there is no legal basis for such arbitration under FINRA's rules. According to Osaic's complaint, none of the defendants were ever customers of Triad Advisors LLC (now known as Osaic) or had any agreements to arbitrate disputes with them.
Osaic contends that the claims should not be arbitrated as they do not meet the criteria set forth in Rule 12200 of the FINRA Code of Arbitration for Customer Disputes. This rule requires arbitration if there is a written agreement or if requested by a customer when the dispute arises from business activities between a customer and a member firm. Osaic has reviewed its records and found no evidence that any defendant had an account or received investment services from Triad or entered into any arbitration agreements.
The plaintiff seeks several forms of relief from the court: an injunction preventing defendants from proceeding with FINRA arbitration; a declaratory judgment affirming that defendants are not customers of Triad and thus cannot compel arbitration; attorney’s fees; and other appropriate relief deemed just by the court.
Representing Osaic Wealth in this matter are attorneys Alison S. Cooney and Scott N. Sherman from Nelson Mullins Riley & Scarborough LLP. The case is presided over by judges in the Northern District of Illinois under Case ID 1:24-cv-12657.