Stifel Financial Ordered to Pay $132M for Misleading Investors

Stifel Financial Corp. has been ordered by a FINRA arbitration panel to pay $132.5 million in damages to the Jannetti family for allegedly misleading them about the risks of complex structured notes, resulting in significant financial losses. This penalty includes $79.5 million in punitive damages and is one of the largest awards in FINRA's history. The Jannettis, who suffered a $60 million loss, accused Stifel of breach of fiduciary duty and negligence under the Florida Securities and Investor Protection Act. Stifel plans to appeal the decision, arguing that the investors were sophisticated and understood the risks associated with their investments. This case highlights the potential consequences for firms that fail to adequately disclose investment risks and comply with industry regulations. The decision reflects a broader trend of FINRA imposing substantial penalties in cases involving misleading investment practices.