KlaymanToskes Wins $6 Million in FINRA Arbitration Awards

National securities law firm secures multi-million-dollar awards for investors harmed by illiquid private placements

Published on Feb. 12, 2026

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National investment loss and securities law firm KlaymanToskes announces that the firm has won over $6 million in combined FINRA arbitration awards across three separate cases on behalf of investors who suffered losses in illiquid private placements, alternative investments, or investments sold by their broker without the approval of the brokerage firm ('selling away'). The FINRA panels ordered the parties found liable to pay over $6 million in combined compensatory damages, attorneys' fees, and sanctions to investors, with one case also awarding punitive damages.

Why it matters

These awards reflect FINRA panels holding financial professionals accountable for wrongful conduct that has resulted in significant investor losses. Many investors are unaware they may have recovery options when they have suffered damages from illiquid private placement investments or investments sold by brokers without firm approval.

The details

According to the arbitration awards, the FINRA panels ordered the parties found liable to pay over $6 million in combined compensatory damages, attorneys' fees, and sanctions to investors. In one of the cases (No. 24-01241), the panel also awarded punitive damages in the amount of $1,323,078, in addition to $1,323,078 in compensatory damages, in accordance with state statutes governing civil theft, civil tort liability, and deceptive and unfair trade practices.

  • The FINRA arbitration awards were announced on February 12, 2026.

The players

KlaymanToskes

A leading national securities law firm that practices exclusively in the field of securities arbitration and litigation on behalf of retail and institutional investors. The firm has recovered over $600 million in Securities Litigation and FINRA Arbitration matters.

Steven D. Toskes

Co-founding partner of KlaymanToskes.

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What they’re saying

“These awards reflect FINRA panels holding financial professionals accountable for their wrongful conduct.”

— Steven D. Toskes, Co-founding partner of KlaymanToskes

What’s next

Investors who suffered losses in illiquid private placement investments, including investments sold to them by their brokers that were not approved by the brokerage firm, may be entitled to financial recovery through FINRA arbitration. KlaymanToskes encourages investors to contact the firm for a free and confidential consultation to discuss potential recovery options.

The takeaway

These FINRA arbitration awards demonstrate that investors who have suffered significant losses from illiquid private placements or investments sold by brokers without firm approval may have recourse to recover their losses through the arbitration process, holding financial professionals accountable for their wrongful conduct.