A U.S. district court magistrate judge on February 25, 2026 recommended that Stifel Financial Corp. not vacate a $133 million arbitration award that was issued by FINRA in March 2025. The award was the result of a dispute with former broker Chuck Roberts over the sale of structured notes to the Jannetti family and other clients.
The arbitration award, which totals approximately $132.5 million to $133 million, was granted after the arbitrator found that Roberts had breached fiduciary duty, engaged in negligent supervision, and committed fraud and breach of contract. The award includes punitive damages that Stifel argues are excessive.
Stifel has filed a brief on February 21, 2026, challenging the magistrate’s recommendation. The company claims that the arbitrator was biased and that the arbitration process violated due‑process rights. Stifel’s motion to vacate is still pending before the district court, and the magistrate’s recommendation is a setback but not a final judgment.
Despite the legal exposure, Stifel’s core business remains strong. In the fourth quarter of 2025, the firm reported record revenue of $5.5 billion, an 11% year‑over‑year increase, and earnings per share of $2.63, beating analyst expectations. The Global Wealth Management segment contributed $3.5 billion in revenue, while the Institutional Group continued to grow. Management highlighted that the company’s operating leverage and pricing power have helped maintain margins above 22%.
Analysts have noted that the arbitration award adds a contingent liability that could impact future earnings, but they also emphasize that Stifel’s recent financial performance and diversified revenue streams mitigate the risk. The market has responded cautiously, with some investors expressing concern over the potential impact on earnings, while others focus on the firm’s robust growth trajectory.
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