In November 1998, an NASD arbitration panel in Philadelphia, PA Oppenheimer to pay Claimant $454,293 in compensatory damages and at least $37,414 in prejudgment interest. Dr. McCann testified that the account was churned and the trading costs should be adjusted to reflect the investment returns the trading costs would have earned if left in the portfolio instead of being taken by the Respondents. The explanation of this market adjusted trading cost measure can be found in an SLCG working paper McCann on Churning. The panel awarded Dr. McCann's measure of churning damages.
