The Maryland Court of Special Appeals affirmed a FINRA arbitration panel’s punitive damages award against a financial adviser, who allegedly withheld from her clients information about a risky business venture.  See Gordon v. Lewis, http://www.mdcourts.gov/opinions/cosa/2013/1505s11.pdf.

The court stated that defendant was a financial and investment adviser to plaintiffs, who were unsophisticated investors.  The plaintiffs filed suit in Maryland state court, complaining that defendant and entities lost their entire investment.  Ultimately, a FINRA arbitration panel found the defendants jointly and severally liable for $250,000 in compensatory damages and $25,000 in punitive damages.  The court said the Maryland Uniform Arbitration Act was limited, and did not prohibit such awards.

In short, punitive awards are fair games, and will be upheld.