Arbitration is your recourse. Since you would be filing a small claim, if you submit the proper paperwork, you may not necessarily need a lawyer. http://www.nasd.com/web/idcplg?IdcService=SS_GET_PAGE&nodeId=511&ssSourceNodeId=521 Personally, I think you may have a case if you can conclusivlely show that you would have held onto the positions had it not been for the margin call. Don't pay attention to the naysayers, they are just posting for kicks. Its your money so you might as well try.
I'm certainly no lawyer, but I think it will be hard to make a case about gains that *might* have happened. You see, Brownco could easily say "What if those stocks had dropped after you sold? Would you send us a check for the money we saved you?" Works the same way. Yes the sale was caused by bad information, but unless you can prove a definite capital-loss (as reported on sched D) I don't see how arbitration would ever rule in your favor. You could also have easily bought the stocks back right after the margin problem was fixed. I doubt all the stocks zoomed up in a couple days. Then you might have had a very good case for recovering the extra commission. That's about it IMHO.
Htrader, THANKS! That's the spirit. Yes, I suppose NASD arbitration is the way to go. I was hoping to find an alternate route, because their mediation process didn't instill me with the greatest confidence. (Brownco just said "no, thanks" and killed it right there.) I hope arbitration is a bit more binding. Funny you should bring that up. For a time during Jan 25-31 the stock had dropped below the original price. I was fully prepared to accept the loss, because as I saw it, it was my stock, and I wanted to hold it. It just so happens that on Jan 31 when Brownco finally responded, the stock was up. Like I said, the calculation of damages is almost immaterial to me. I just want to send a message to Brownco that they can't run their business this way, not when I'm in town.
Don't take this the wrong way .. but if you're serious about trading you'd not used a firm like Brownco IMO. Second, even if they gave you erroneous info you ultimately sold your long positions. So it was a choice you made. They didn't go and liquidate them from what you posted.
I think you missed my point: I sold the positions because they said I had to. Imagine the bank telling you that you have to sell your home; you sell it; then they say, "Oh, accounting error, sorry." You would want your damn house back, yes? Re: Brownco & serious trading. So you're implying that a trader's seriousness is determined by his/her choice of broker? Isn't that like saying a driver's skill is determined by what car he/she drives? I have to strongly disagree there. But as long as we're on the subject, please feel free to suggest a broker who specializes in online trading, complex options spreads and commissions of <$15 on lots of 1000 (10 contracts). Seriously, I'm in the market for a new broker.
He has a valid claim, he wants the actual positions back not the supposed profit. I hope they at least refunded the commissions.
I wish. They said they would, but they haven't followed through on that promise. So I just added that to the total price tag. Exactly, sir! The $7000 is simply the monetary equivalent of the difference in share price between the time of sale (Jan 25) and the time of the claim (Jan 31). NASD requires a dollar amount to be specified on all claims, because apparently they don't award stock outright. Anyway, helpful advice is much appreciated. Non-helpful & curt remarks are... well... forgiven. Hey, I used to be a teenager, too, you know.
Close your account and move to another broker. Sue them in Small Claims court for $3000. Only cost around $15-30. $3000 is better than nothing. Good Luck!