Stifel Financial has reached a settlement in principle with the Jannetti family over a $132.5 million FINRA arbitration award that stemmed from structured note losses tied to broker Chuck A. Roberts. David Jannetti of Miami and his three children alleged Stifel sold a concentrated strategy of risky structured notes while presenting the products as low-risk, principal-protected investments. The case became one of the largest individual-investor FINRA awards of the past decade before the parties agreed to resolve it privately in May 2026.
What happened
Mr. Jannetti and his children invested through Mr. Roberts at Stifel, where they were allegedly told that a structured note strategy would preserve principal and deliver long-term average returns of 12.25 percent. The family later discovered that the notes carried far more downside risk than disclosed. They filed a FINRA arbitration claim alleging breach of fiduciary duty, negligence, negligent supervision, fraud, breach of contract, and violation of the Florida Securities and Investor Protection Act. A FINRA arbitration panel awarded the family approximately $132.5 million in March 2025.
Stifel responded by filing a federal court motion to vacate the award in Miami. U.S. District Judge Darrin P. Gayles rejected Stifel’s request, noting that the firm had waited too long to object to an arbitrator it had previously selected and used in another case. The ruling left Stifel facing both the principal award and approximately $12 million in prejudgment interest, plus roughly $30,000 per day in ongoing interest while the award remained unpaid. In May 2026, the Jannetti family filed a notice that the parties had reached a settlement in principle and requested a 30-day stay to finalize the agreement. A Stifel spokesperson declined to comment.
Key facts
| Item | Details |
|---|---|
| Claimants | David Jannetti and three children (Miami) |
| Defendants | Stifel Financial, broker Chuck A. Roberts |
| Products | Structured notes presented as low risk |
| Promised return | 12.25% long-term average |
| FINRA award | ~$132.5 million (March 2025) |
| Prejudgment interest | ~$12 million |
| Ongoing interest | ~$30,000 per day |
| Court ruling | U.S. District Judge Darrin P. Gayles denied vacatur |
| Settlement status | Settlement in principle reached (May 2026) |
The broker’s strategy and red flags
Structured notes are debt instruments whose returns are linked to underlying assets such as indexes, individual stocks, or commodities. They often include derivatives that cap upside while exposing investors to significant downside if the linked asset falls. The Jannetti family alleges Mr. Roberts presented the notes as principal-protected and low risk, descriptions that are misleading for many structured products. Brokers have an obligation to explain the derivative components, call provisions, and downside triggers embedded in these instruments.
Three warning signs should have prompted enhanced scrutiny. First, a promised long-term average return of 12.25 percent exceeds what high-grade bonds deliver and should have triggered questions about the underlying risk. Second, any claim that structured notes are principal protected requires verification of the exact protection mechanism, because many products only return principal if held to maturity and the underlying index stays above a barrier. Third, concentration of a family’s wealth in a single strategy eliminates diversification.
What investors should do
If you hold structured notes or were sold them as principal-protected, review the offering documents carefully. Verify whether the note provides full principal protection, buffered protection, or conditional protection tied to a barrier level. Check the call schedule and early-redemption provisions, because structured notes are often callable by the issuer at disadvantageous times. Request a written suitability analysis from your advisor that explains why the product fits your risk tolerance, time horizon, and liquidity needs.
Investors should also review their statements for concentration risk. A single strategy should not represent more than 10 to 15 percent of a conservative retiree’s portfolio. Preserve all marketing materials, suitability questionnaires, and correspondence. These documents become critical evidence if you pursue arbitration or mediation for recovery.
Haselkorn & Thibaut fights for investor recovery
Haselkorn & Thibaut is a securities law firm founded by former Wall Street defense attorneys who shifted their practice to represent investors. The firm has recovered over $520 million for clients in securities matters and maintains a 98 percent success rate in resolved nontraded REIT cases. Attorneys are AV Preeminent rated through Martindale-Hubbell, designated as Super Lawyers, and hold a 5.0-star client review average. The firm operates on a contingency basis — no recovery, no fee.
Contact Haselkorn & Thibaut today
If you lost money in unsuitable structured notes or any other complex product sold by Stifel Financial or another brokerage, you may have grounds for recovery through FINRA arbitration or direct settlement. The firm offers a free case evaluation to assess your losses, review your account history, and explain your options.
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Offices in Florida, New York, Arizona, Texas, and North Carolina. Former Wall Street defense attorneys with 95+ years of combined experience. No recovery, no fee.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Each case is unique, and outcomes depend on specific facts and applicable law.
