Four Stifel, Nicolaus & Co. (SF) clients were awarded $1.5M in compensatory damages in their Financial Industry Regulatory Authority (FINRA) arbitration case against the brokerage firm. According to AdvisorHub, the claimants are accusing the broker-dealer of not properly supervising Stifel Nicolaus broker Kenneth D. Blumberg, who they contend invested up to 80% of their portfolio in biotech stocks.
The claimants also said that Blumberg mismarked trades and encouraged them to add more positions even as they were losing money. They are alleging the following:
- Breach of fiduciary duty