New York, NY securities attorney Jenice L. Malecki talks about investor mediation. She points out that in every investor case, there is an opportunity for mediation. Mediation is essentially a settlement conference conducted before a neutral third party, chosen and agreed upon by both sides, with the goal of resolving the case. Participants must enter in good faith, with the objective of reaching a resolution. The mediator does not make decisions on who is right or wrong but provides a forum for the aggrieved party to share their experience and tell their story.

The mediator may offer an assessment of what could constitute a fair settlement, which can help guide discussions when both parties are strongly advocating for their positions. Mediation is confidential, typically non-binding, and nothing said during the session can be used against a participant in court. It can occur at any stage of a case—before filing, after filing, before or after discovery, or even just prior to a hearing. While settlements often happen before a hearing decision, she notes that even late-stage mediations can sometimes lead to resolution, keeping hope alive for the parties involved.