DeWaay gets reprieve from Iowa court

MAY 30, 2012
By  AOSTERLAND
DeWaay Financial Network LLC, one of dozens of broker-dealers ensnared in litigation over private placement investments gone sour, got some momentary relief from the Iowa District Court for Decatur County on Thursday. Judge John Lloyd ruled to keep temporary restraining orders in place while he considers the merits of a class action filed against the broker-dealer. The orders prevent more than a dozen arbitration claims filed against the company with the Financial Industry Regulatory Authority Inc. from proceeding. The Finra claims are seeking collective damages of more than $6 million — more than seven times the company's current net capital of $820,000, according to financial documents filed by the firm last month. Lawyers for arbitration claimants asked the court to revoke the restraining order and let their cases with Finra proceed. However, the plaintiff's attorneys who filed the class action against the firm argued that there is not enough money to go around and that the more equitable solution would be to roll all claims into a non-opt out class action. “This is a win for equity and fairness,” said Scott Adkins, a plaintiff's lawyer with Menzer & Hill PA who working on the case. “DeWaay has extremely limited resources and hundreds of clients who've lost a lot of money.” “The balance to be struck here is between the early birds, who would have the whole worm, and the late risers, who would have the worm diced into small pieces,” Judge Lloyd wrote in his decision. The court will now consider the merits of the class action. Executives at DeWaay Financial were not immediately available for comment.

Latest News

'Bogged down' advisors just want to have fun (again)
'Bogged down' advisors just want to have fun (again)

Jim Cahn, of Wealth Enhancement Group, lifts the lid on his firm's partnership model, his views on RIA M&A, and the widely slept-on reason why advisors are merging into larger organizations.

Vestwell unveils new emergency savings account offering
Vestwell unveils new emergency savings account offering

The fintech firm is cementing its status in the workplace savings space with its latest ESA offering, which employers can integrate into their existing benefits package.

'Money Mimosas' and other ways to show your Valentine financial love
'Money Mimosas' and other ways to show your Valentine financial love

Wealth managers offer unique ideas for couples to grow closer emotionally and financially.

Limra research finds financial confidence on the rise among Black American workers
Limra research finds financial confidence on the rise among Black American workers

Survey findings suggest increased sense of financial security and more optimistic 2025 outlook, while highlighting employers' role in ensuring retirement readiness.

DOGE efforts sideswipe muni bonds backed by federal lease payments
DOGE efforts sideswipe muni bonds backed by federal lease payments

Falling prices for some securities within the $4 trillion state and local government debt market spotlight how the push to shrink spending is sending shockwaves across the US.

SPONSORED Record growth: Interval funds emerge as key players in alternative investments

Blue Vault Alts Summit highlights the role of liquidity-focused funds in reshaping advisor strategies

SPONSORED Taylor Matthews on what's behind Farther's rapid growth

From 'no clients' to reshaping wealth management, Farther blends tech and trust to deliver family-office experience at scale.