Overview
On March 24, 2026, a federal district court judge in Florida entered an order formally denying Stifel, Nicolaus & Company, Inc.’s motion to vacate a $133 million FINRA Arbitration award. The court finalized its order after reviewing a recommendation from a federal magistrate court judge recommending the same. The $133 million FINRA Arbitration award was awarded on March 12, 2025, after the Jannetti family sued Stifel’s broker-dealer for $5 million related to bad investments in structured notes, recommended by former Stifel registered representative Chuck Roberts. While the Jannetti family only sought $5 million in compensatory damages, the arbitration panel awarded $133 million, largely for punitive damages in addition to compensatory damages. According to news outlets, other investors have sued Stifel for similar structured note investments.
What Are Structured Notes?
Structured notes are alternative investment products “structured” to meet specific investment objectives. They are hybrid debt instruments that combine traditional bonds with a derivative component where the issuer of the note promises to pay a return to the investor based on an underlying referenced financial instrument. The referenced financial instrument may include equities, debt securities, indexes, and interest rates, among other items.
Why Are Structured Notes Risky?
Structured notes may become risky for several reasons, including but not limited to, issuer credit risks, product liquidity, and conflicts of interest. For instance, credit risks can impact an investment if the issuing financial institution fails. If this happens, an investor can lose some or all of their principal investment. Another risk associated with structured notes is their liquidity. Often, structured notes are not traded on exchanges, requiring them to be sold on secondary markets. In addition, conflicts of interest can arise where broker-dealers pay their financial advisors higher commissions for selling structured notes.
Impacted Investors
If you have suffered investment losses after investing in structured notes at Stifel, or at any other financial institution, do not hesitate to contact our office at 800-556-3526 or complete our contact form for a free consultation. We work on a contingency fee basis to try to recover losses. In other words, if we do not obtain a recovery, you do not owe us any legal fees. Act before time runs out on your claim.