National investment loss lawyers KlaymanToskes reports that Stifel Financial has been ordered to pay nearly $133 million in damages by a Financial Industry Regulatory Authority (FINRA) arbitration panel. The ruling follows allegations that Stifel failed to supervise a Miami-based broker’s structured note strategy, which led to significant investor losses.
KlaymanToskes is currently representing a customer of Stifel, Nicolaus, & Co. (Case no. 23-02648), who is seeking to recover $1,300,000 in damages due to unsuitable and overconcentrated structured note investment recommendations.
The recent FINRA arbitration award, finalized on March 12, 2025, includes $80 million in punitive damages, $26.5 million in compensatory damages, and $26.5 million in legal fees. The three-person public arbitration panel criticized Stifel for failing to supervise its broker, Chuck Roberts, and allowing clients’ accounts to be dangerously overconcentrated in high-risk structured notes.
Customers of Stifel and other brokerage firms who suffered losses due to recommendations to invest in unsuitable structured note investments are encouraged to contact KlaymanToskes at 888-997-9956 or by email at investigations@klaymantoskes.com for a free and confidential consultation to discuss potential recovery options.
According to the FINRA arbitration award, Stifel allegedly had actual knowledge that the broker’s conduct was wrongful but still pursued the investment strategy. Further, Stifel allowed customers to be overconcentrated in limited industries, particularly volatile biotech stocks. The brokerage firm reportedly failed to implement heightened supervision of broker Chuck Roberts, and permitted the use of text messages to offer “custom” structured note products, violating Securities and Exchange Commission (SEC) recordkeeping requirements.This award underscores the increasing regulatory scrutiny surrounding structured note investments and brokerage firms’ duty to protect investors.
The broker at the center of this case, Chuck Roberts, has been the subject of over $48 million in pending damage claims from 18 customer complaints since 2022, according to FINRA’s BrokerCheck records. The ruling against Stifel adds to its growing legal liabilities, including:
Despite these rulings, Stifel has indicated it will seek judicial review of the decision, calling the award “outsized” and arguing that the investors involved were experienced and aggressive individuals who understood the risks of structured notes.
Structured notes are complex, high-risk financial products that combine derivatives with traditional securities. While these products can offer customized investment solutions, they often come with hidden risks, high fees, and limited liquidity. Investors who have suffered losses due to unsuitable investment recommendations or broker misconduct due to Stifel’s structured note strategy, should contact us immediately at 888-997-9956 for a free and confidential consultation.
KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration and litigation on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered over $250 million in FINRA arbitrations and over $350 million in other securities litigation matters. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.
KlaymanToskes, P.A.
Steven D. Toskes, Esq.
888-997-9956
investigations@klaymantoskes.com
www.klaymantoskes.com