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PUBLICATION","paragraph_id":"para_1"},{"text":"UNITED STATES COURT OF APPEALS","paragraph_id":"para_2"},{"text":"FOR THE NINTH CIRCUIT","paragraph_id":"para_3"},{"text":"OPPENHEIMER & CO. INC.,","paragraph_id":"para_4"},{"text":"Plaintiff - Appellee,","paragraph_id":"para_5"},{"text":"v.","paragraph_id":"para_6"},{"text":"STEVEN MITCHELL; DORI","paragraph_id":"para_7"},{"text":"MITCHELL; JEROME HOPPER;","paragraph_id":"para_8"},{"text":"LORI HOPPER,","paragraph_id":"para_9"},{"text":"Defendants - Appellants.","paragraph_id":"para_10"},{"text":"No. 24-2379","paragraph_id":"para_11"},{"text":"D.C. No.","paragraph_id":"para_12"},{"text":"2:23-cv-00067-","paragraph_id":"para_13"},{"text":"MJP","paragraph_id":"para_14"},{"text":"OPINION","paragraph_id":"para_15"},{"text":"Appeal from the United States District Court","paragraph_id":"para_16"},{"text":"for the Western District of Washington","paragraph_id":"para_17"},{"text":"Marsha J. Pechman, District Judge, Presiding","paragraph_id":"para_18"},{"text":"Argued and Submitted April 1, 2025","paragraph_id":"para_19"},{"text":"Pasadena, California","paragraph_id":"para_20"},{"text":"Filed April 24, 2025","paragraph_id":"para_21"},{"text":"Before: MILAN D. SMITH, JR. and LAWRENCE","paragraph_id":"para_22"},{"text":"VANDYKE, Circuit Judges, and JANE MAGNUS-","paragraph_id":"para_23"},{"text":"STINSON, District Judge.*","paragraph_id":"para_24"},{"text":"Opinion by Judge Milan D. Smith, Jr.","paragraph_id":"para_25"},{"text":"* The Honorable Jane Magnus-Stinson, United States District Judge for","paragraph_id":"para_26"},{"text":"the Southern District of Indiana, sitting by designation.","paragraph_id":"para_27"},{"text":"2 OPPENHEIMER & CO. INC. V. MITCHELL","paragraph_id":"para_28"},{"text":"SUMMARY**","paragraph_id":"para_29"},{"text":"Arbitration","paragraph_id":"para_30"},{"text":"The panel affirmed the district court’s order granting","paragraph_id":"para_31"},{"text":"summary judgment in favor of Oppenheimer & Co., Inc.,","paragraph_id":"para_32"},{"text":"which sought a declaration that the Defendants, the alleged","paragraph_id":"para_33"},{"text":"victims of a Ponzi scheme, were not its customers and","paragraph_id":"para_34"},{"text":"therefore not entitled to arbitration; and entering a permanent","paragraph_id":"para_35"},{"text":"injunction prohibiting Defendants from arbitrating their","paragraph_id":"para_36"},{"text":"claims.","paragraph_id":"para_37"},{"text":"In November 2021, Defendants commenced an","paragraph_id":"para_38"},{"text":"arbitration proceeding against Oppenheimer in the dispute","paragraph_id":"para_39"},{"text":"resolution arbitral forum of the Financial Industry","paragraph_id":"para_40"},{"text":"Regulatory Authority (FINRA). Before a final evidentiary","paragraph_id":"para_41"},{"text":"hearing was scheduled to begin before a panel of arbitrators,","paragraph_id":"para_42"},{"text":"Oppenheimer filed the present action against Defendants.","paragraph_id":"para_43"},{"text":"Although Defendants conceded that they had no direct","paragraph_id":"para_44"},{"text":"relationship with Oppenheimer, a FINRA member, they","paragraph_id":"para_45"},{"text":"alleged that they were customers of Oppenheimer for","paragraph_id":"para_46"},{"text":"purposes of FINRA Rule 12200 because they transacted with","paragraph_id":"para_47"},{"text":"Oppenheimer employee John Woods, who was one of","paragraph_id":"para_48"},{"text":"Oppenheimer’s “associated persons” within the meaning of","paragraph_id":"para_49"},{"text":"the FINRA Code.","paragraph_id":"para_50"},{"text":"The panel held that a “customer” under FINRA Rule","paragraph_id":"para_51"},{"text":"12200 includes any non-broker and non-dealer who","paragraph_id":"para_52"},{"text":"purchases commodities or services from a FINRA member","paragraph_id":"para_53"},{"text":"or its associated person. The panel found that Defendants","paragraph_id":"para_54"},{"text":"** This summary constitutes no part of the opinion of the court. It has","paragraph_id":"para_55"},{"text":"been prepared by court staff for the convenience of the reader.","paragraph_id":"para_56"},{"text":"OPPENHEIMER & CO. INC. V. MITCHELL 3","paragraph_id":"para_57"},{"text":"could be entitled to arbitrate their claims against","paragraph_id":"para_58"},{"text":"Oppenheimer if they could demonstrate that they transacted","paragraph_id":"para_59"},{"text":"with Woods. Nevertheless, the panel agreed with the district","paragraph_id":"para_60"},{"text":"court that Defendants did not transact with Woods because","paragraph_id":"para_61"},{"text":"they purchased their investments from Woods’s associate,","paragraph_id":"para_62"},{"text":"Michael Mooney, and not from Woods himself. The panel","paragraph_id":"para_63"},{"text":"further rejected Defendants’ claim that their investments,","paragraph_id":"para_64"},{"text":"through Mooney, and into an entity formed and controlled","paragraph_id":"para_65"},{"text":"by Woods, may be attributed to Woods under an “alter ego”","paragraph_id":"para_66"},{"text":"theory of liability.","paragraph_id":"para_67"},{"text":"The panel held that the district court did not abuse its","paragraph_id":"para_68"},{"text":"discretion by entering a permanent injunction. The panel","paragraph_id":"para_69"},{"text":"rejected Defendants’ contentions that the district court erred","paragraph_id":"para_70"},{"text":"by introducing unsupported requirements for the legal","paragraph_id":"para_71"},{"text":"definition of a “customer” and by making factual findings","paragraph_id":"para_72"},{"text":"that were unsupported by the record.","paragraph_id":"para_73"},{"text":"COUNSEL","paragraph_id":"para_74"},{"text":"Jason D. Frank (argued) and Matthew C. McDonough,","paragraph_id":"para_75"},{"text":"Morgan Lewis & Bockius LLP, Boston, Massachusetts;","paragraph_id":"para_76"},{"text":"Andrew DeCarlow, Morgan Lewis & Bockius LLP, Seattle,","paragraph_id":"para_77"},{"text":"Washington; for Plaintiff-Appellee.","paragraph_id":"para_78"},{"text":"Roger M. Townsend (argued), Breskin Johnson &","paragraph_id":"para_79"},{"text":"Townsend PLLC, Seattle, Washington; Craig Kuglar, Law","paragraph_id":"para_80"},{"text":"Firm of Craig H. Kuglar LLC, Atlanta, Georgia; for","paragraph_id":"para_81"},{"text":"Defendants-Appellants.","paragraph_id":"para_82"},{"text":"Alan L. Rosca, Rosca Scarlato LLC, Beachwood, Ohio, for","paragraph_id":"para_83"},{"text":"Amicus Curiae Public Investors Arbitration Bar Association.","paragraph_id":"para_84"},{"text":"4 OPPENHEIMER & CO. INC. V. MITCHELL","paragraph_id":"para_85"},{"text":"Robert J. Giuffra Jr. and Jason P. Barnes, Sullivan &","paragraph_id":"para_86"},{"text":"Cromwell LLP, New York, New York; Morgan L. Ratner,","paragraph_id":"para_87"},{"text":"Sullivan & Cromwell LLP, Washington, D.C.; for Amicus","paragraph_id":"para_88"},{"text":"Curiae The Securities Industry and Financial Markets","paragraph_id":"para_89"},{"text":"Association.","paragraph_id":"para_90"},{"text":"OPINION","paragraph_id":"para_91"},{"text":"M. SMITH, Circuit Judge:","paragraph_id":"para_92"},{"text":"Defendants, the alleged victims of a Ponzi scheme","paragraph_id":"para_93"},{"text":"perpetrated by John Woods, seek to bring supervisory","paragraph_id":"para_94"},{"text":"liability claims against Woods’s employer, Plaintiff","paragraph_id":"para_95"},{"text":"Oppenheimer & Co. Inc. Because FINRA Rule 12200","paragraph_id":"para_96"},{"text":"obligates FINRA members to arbitrate the claims of","paragraph_id":"para_97"},{"text":"customers upon request, Defendants brought their claims","paragraph_id":"para_98"},{"text":"against Oppenheimer, a FINRA member, in one of FINRA’s","paragraph_id":"para_99"},{"text":"arbitral forums. Oppenheimer responded by commencing","paragraph_id":"para_100"},{"text":"these proceedings in federal court, seeking a declaration that","paragraph_id":"para_101"},{"text":"Defendants were not its customers and therefore not entitled","paragraph_id":"para_102"},{"text":"to arbitration. The district court agreed. After a limited","paragraph_id":"para_103"},{"text":"period of discovery, it granted summary judgment in favor","paragraph_id":"para_104"},{"text":"of Oppenheimer and entered a permanent injunction","paragraph_id":"para_105"},{"text":"prohibiting Defendants from arbitrating their claims.","paragraph_id":"para_106"},{"text":"Defendants timely appeal that outcome. Although they","paragraph_id":"para_107"},{"text":"concede that they have no direct relationship with","paragraph_id":"para_108"},{"text":"Oppenheimer, they maintain—as they did in the district","paragraph_id":"para_109"},{"text":"court—that they are customers of Oppenheimer for purposes","paragraph_id":"para_110"},{"text":"of FINRA Rule 12200 because they transacted with Woods,","paragraph_id":"para_111"},{"text":"who is one of Oppenheimer’s “associated persons” within","paragraph_id":"para_112"},{"text":"the meaning of the FINRA Code. Defendants accordingly","paragraph_id":"para_113"},{"text":"OPPENHEIMER & CO. INC. V. MITCHELL 5","paragraph_id":"para_114"},{"text":"ask that we vacate the district court’s injunction and","paragraph_id":"para_115"},{"text":"authorize them to proceed in arbitrating their claims.","paragraph_id":"para_116"},{"text":"Defendants further argue that, even if they are not customers","paragraph_id":"para_117"},{"text":"of Oppenheimer, the district court abused its discretion by","paragraph_id":"para_118"},{"text":"entering a permanent injunction and committed reversible","paragraph_id":"para_119"},{"text":"legal errors in its analysis.","paragraph_id":"para_120"},{"text":"We disagree. We conclude, as did the district court, that","paragraph_id":"para_121"},{"text":"individuals who transact with “associated persons” of","paragraph_id":"para_122"},{"text":"FINRA members are “customers” of those FINRA members","paragraph_id":"para_123"},{"text":"for purposes of FINRA Rule 12200. Therefore, we find that","paragraph_id":"para_124"},{"text":"Defendants could be entitled to arbitrate their claims against","paragraph_id":"para_125"},{"text":"Oppenheimer if they could demonstrate that they transacted","paragraph_id":"para_126"},{"text":"with Woods. Nevertheless, we agree with the district court","paragraph_id":"para_127"},{"text":"that Defendants did not transact with Woods because they","paragraph_id":"para_128"},{"text":"purchased their investments from Woods’s associate,","paragraph_id":"para_129"},{"text":"Michael Mooney, and not from Woods himself. We further","paragraph_id":"para_130"},{"text":"reject Defendants’ claim that their investments, through","paragraph_id":"para_131"},{"text":"Mooney, and into an entity formed and controlled by Woods,","paragraph_id":"para_132"},{"text":"may be attributed to Woods under an “alter ego” theory of","paragraph_id":"para_133"},{"text":"liability. Because we discern no other errors in the district","paragraph_id":"para_134"},{"text":"court’s analysis, we affirm its order in full.","paragraph_id":"para_135"},{"text":"FACTUAL BACKGROUND","paragraph_id":"para_136"},{"text":"Plaintiff-Appellee Oppenheimer & Co. Inc.","paragraph_id":"para_137"},{"text":"(Oppenheimer) is a securities firm headquartered in New","paragraph_id":"para_138"},{"text":"York, with approximately 90 branch offices across the","paragraph_id":"para_139"},{"text":"United States. Oppenheimer is a member of the Financial","paragraph_id":"para_140"},{"text":"Industry Regulatory Authority (FINRA) and is registered","paragraph_id":"para_141"},{"text":"with the Securities and Exchange Commission (SEC) as both","paragraph_id":"para_142"},{"text":"a broker-dealer and an investment advisor. Through its","paragraph_id":"para_143"},{"text":"registered investment adviser representatives, including","paragraph_id":"para_144"},{"text":"John Woods (Woods), an employee in Oppenheimer’s","paragraph_id":"para_145"},{"text":"6 OPPENHEIMER & CO. INC. V. MITCHELL","paragraph_id":"para_146"},{"text":"Atlanta, Georgia branch, Oppenheimer offers a variety of","paragraph_id":"para_147"},{"text":"investment products for sale.","paragraph_id":"para_148"},{"text":"Defendants-Appellants Steven and Dori Mitchell (the","paragraph_id":"para_149"},{"text":"Mitchells) and Jerome and Lori Hopper (the Hoppers) are","paragraph_id":"para_150"},{"text":"retired pilots and their spouses who invested in an alleged","paragraph_id":"para_151"},{"text":"Ponzi scheme perpetrated by Woods. According to","paragraph_id":"para_152"},{"text":"Defendants, while Woods was employed by Oppenheimer","paragraph_id":"para_153"},{"text":"between 2003 and 2016, he controlled two companies—","paragraph_id":"para_154"},{"text":"Horizon Private Equity, III, LLC (Horizon), a private equity","paragraph_id":"para_155"},{"text":"fund, and Livingston Group Asset Management Company,","paragraph_id":"para_156"},{"text":"Inc. d/b/a Southport Capital (Southport), an investment","paragraph_id":"para_157"},{"text":"advisor—that collaborated to prey upon elderly victims.","paragraph_id":"para_158"},{"text":"Specifically, under the direction of Woods, Southport","paragraph_id":"para_159"},{"text":"allegedly entreated individuals to invest in Horizon based","paragraph_id":"para_160"},{"text":"upon material misrepresentations that their investments were","paragraph_id":"para_161"},{"text":"safe and secure, would pay a fixed rate of return, and could","paragraph_id":"para_162"},{"text":"be returned without penalty subject to limited waiting","paragraph_id":"para_163"},{"text":"periods. According to Defendants, these guarantees—and","paragraph_id":"para_164"},{"text":"their investments—proved to be worthless, while Horizon","paragraph_id":"para_165"},{"text":"was a shell entity that made no returns and instead operated","paragraph_id":"para_166"},{"text":"only by paying out funds derived from new investor capital.","paragraph_id":"para_167"},{"text":"Working with Michael Mooney (Mooney), one of","paragraph_id":"para_168"},{"text":"Southport’s registered representatives, the Hoppers invested","paragraph_id":"para_169"},{"text":"approximately $600,000 of their retirement savings into","paragraph_id":"para_170"},{"text":"Horizon beginning in May 2016. The Mitchells, also","paragraph_id":"para_171"},{"text":"working with Mooney, invested over $1,600,000 beginning","paragraph_id":"para_172"},{"text":"in July 2016. Defendants’ investments, and their","paragraph_id":"para_173"},{"text":"interactions with Southport, were facilitated primarily by","paragraph_id":"para_174"},{"text":"Mooney, who sold Defendants their securities, served as","paragraph_id":"para_175"},{"text":"their ongoing investment adviser, and earned commissions","paragraph_id":"para_176"},{"text":"on their business. In investing in Horizon, Defendants had","paragraph_id":"para_177"},{"text":"no contact or relationship with any representative of","paragraph_id":"para_178"},{"text":"Oppenheimer. Apart from a single phone conversation","paragraph_id":"para_179"},{"text":"OPPENHEIMER & CO. INC. V. MITCHELL 7","paragraph_id":"para_180"},{"text":"between the Mitchells and Woods in 2016, Defendants also","paragraph_id":"para_181"},{"text":"had no direct contact or relationship with Woods.","paragraph_id":"para_182"},{"text":"PROCEDURAL BACKGROUND","paragraph_id":"para_183"},{"text":"In November 2021, Defendants, along with one other","paragraph_id":"para_184"},{"text":"claimant, commenced an arbitration proceeding against","paragraph_id":"para_185"},{"text":"Oppenheimer in FINRA’s dispute resolution arbitral forum.","paragraph_id":"para_186"},{"text":"The proceeding, which was styled as Mitchell v.","paragraph_id":"para_187"},{"text":"Oppenheimer & Co. Inc., FINRA No. 21-02818 (the FINRA","paragraph_id":"para_188"},{"text":"Arbitration), arose from Defendants’ claims that Woods was","paragraph_id":"para_189"},{"text":"perpetrating a Ponzi scheme that preyed upon elderly","paragraph_id":"para_190"},{"text":"victims. Through their arbitration statement of claim,","paragraph_id":"para_191"},{"text":"Defendants alleged that Woods, Southport, Horizon, and","paragraph_id":"para_192"},{"text":"Mooney had collectively induced them to invest millions in","paragraph_id":"para_193"},{"text":"Horizon based upon material misrepresentations that","paragraph_id":"para_194"},{"text":"investing was profitable and low-risk. Defendants further","paragraph_id":"para_195"},{"text":"alleged that Oppenheimer, as Woods’s employer, failed to","paragraph_id":"para_196"},{"text":"carry out its legal duty to supervise Woods and his business","paragraph_id":"para_197"},{"text":"activities.","paragraph_id":"para_198"},{"text":"The FINRA Arbitration proceeded through discovery,","paragraph_id":"para_199"},{"text":"and a panel of three FINRA arbitrators was selected to","paragraph_id":"para_200"},{"text":"oversee the arbitration in accordance with the FINRA Code.","paragraph_id":"para_201"},{"text":"A final evidentiary hearing was scheduled to begin before","paragraph_id":"para_202"},{"text":"the panel of arbitrators in March 2023. Before that hearing","paragraph_id":"para_203"},{"text":"occurred, Oppenheimer filed the present action against","paragraph_id":"para_204"},{"text":"Defendants in January 2023. Through the action, to which","paragraph_id":"para_205"},{"text":"Woods is not a party, Oppenheimer sought a declaratory","paragraph_id":"para_206"},{"text":"judgment that it was not required to arbitrate with","paragraph_id":"para_207"},{"text":"Defendants because they were not its customers for purposes","paragraph_id":"para_208"},{"text":"of FINRA Rule 12200. Oppenheimer further sought a","paragraph_id":"para_209"},{"text":"permanent injunction prohibiting Defendants from","paragraph_id":"para_210"},{"text":"arbitrating their claims.","paragraph_id":"para_211"},{"text":"8 OPPENHEIMER & CO. INC. V. MITCHELL","paragraph_id":"para_212"},{"text":"In March 2023, the district court granted Oppenheimer’s","paragraph_id":"para_213"},{"text":"motion for a preliminary injunction. Limited discovery then","paragraph_id":"para_214"},{"text":"proceeded, followed by briefing on the parties’ cross-","paragraph_id":"para_215"},{"text":"motions for summary judgment. During this time,","paragraph_id":"para_216"},{"text":"Defendants voluntarily moved to dismiss without prejudice","paragraph_id":"para_217"},{"text":"their claims in the FINRA Arbitration. The arbitration panel","paragraph_id":"para_218"},{"text":"granted Defendants’ motion and held that if Defendants","paragraph_id":"para_219"},{"text":"prevailed in federal court, they could “separately or jointly","paragraph_id":"para_220"},{"text":"refile their claims in arbitration proceeding(s) at a later date.”","paragraph_id":"para_221"},{"text":"In April 2024, the district court granted Oppenheimer’s","paragraph_id":"para_222"},{"text":"motion for summary judgment and denied Defendants’","paragraph_id":"para_223"},{"text":"cross-motion for summary judgment. It held that","paragraph_id":"para_224"},{"text":"Defendants were not customers of Woods or Oppenheimer,","paragraph_id":"para_225"},{"text":"and therefore not entitled to arbitrate their claims under","paragraph_id":"para_226"},{"text":"FINRA Rule 12200, because they did not purchase their","paragraph_id":"para_227"},{"text":"interests in Horizon through or from Woods or","paragraph_id":"para_228"},{"text":"Oppenheimer. It further held that Oppenheimer had satisfied","paragraph_id":"para_229"},{"text":"the requirements for a permanent injunction because","paragraph_id":"para_230"},{"text":"Oppenheimer would be irreparably harmed by proceeding to","paragraph_id":"para_231"},{"text":"arbitration, the equities favored Oppenheimer’s cause, and","paragraph_id":"para_232"},{"text":"there was no public interest in compelling Oppenheimer to","paragraph_id":"para_233"},{"text":"arbitrate against its wishes. The district court then entered a","paragraph_id":"para_234"},{"text":"permanent injunction prohibiting Defendants from","paragraph_id":"para_235"},{"text":"arbitrating their claims. Defendants timely appealed.","paragraph_id":"para_236"},{"text":"STATUTORY BACKGROUND","paragraph_id":"para_237"},{"text":"FINRA, formerly the National Association of Securities","paragraph_id":"para_238"},{"text":"Dealers, Inc. (NASD), is a not-for-profit corporation","paragraph_id":"para_239"},{"text":"registered with the SEC as a national securities association","paragraph_id":"para_240"},{"text":"under the Maloney Act. 15 U.S.C. § 78o–3. “FINRA is a","paragraph_id":"para_241"},{"text":"self-regulatory organization that has ‘the authority to","paragraph_id":"para_242"},{"text":"exercise comprehensive oversight over “all securities firms","paragraph_id":"para_243"},{"text":"that do business with the public.”’” Goldman, Sachs & Co.","paragraph_id":"para_244"},{"text":"OPPENHEIMER & CO. INC. V. MITCHELL 9","paragraph_id":"para_245"},{"text":"v. City of Reno, 747 F.3d 733, 737 (9th Cir. 2014) (quoting","paragraph_id":"para_246"},{"text":"UBS Fin. Servs., Inc. v. W. Va. Univ. Hosps., Inc., 660 F.3d","paragraph_id":"para_247"},{"text":"643, 648 (2d Cir. 2011)). To ensure this oversight, all","paragraph_id":"para_248"},{"text":"securities firms seeking to conduct transactions with the","paragraph_id":"para_249"},{"text":"investing public in the United States are required to register","paragraph_id":"para_250"},{"text":"as FINRA members. 15 U.S.C. § 78o(b)(8); 17 C.F.R.","paragraph_id":"para_251"},{"text":"§ 240.15b9-1. Members agree to abide by FINRA’s set of","paragraph_id":"para_252"},{"text":"rules and regulations, known as the FINRA Code. FINRA","paragraph_id":"para_253"},{"text":"Bylaws, art. IV, § 1(a).","paragraph_id":"para_254"},{"text":"One of the rules by which FINRA members agree to","paragraph_id":"para_255"},{"text":"abide is FINRA Rule 12200, which provides that “[p]arties","paragraph_id":"para_256"},{"text":"must arbitrate a dispute under the [FINRA] Code” if three","paragraph_id":"para_257"},{"text":"conditions are satisfied. FINRA Rule 12200. First,","paragraph_id":"para_258"},{"text":"arbitration must be “either (1) [r]equired by a written","paragraph_id":"para_259"},{"text":"agreement, or (2) [r]equested by the customer.” Id. Second,","paragraph_id":"para_260"},{"text":"the dispute must be “between a customer and a member or","paragraph_id":"para_261"},{"text":"associated person of a member.” Id. Third, and finally, the","paragraph_id":"para_262"},{"text":"dispute must “arise[] in connection with the business","paragraph_id":"para_263"},{"text":"activities of the member or the associated person.” Id. If","paragraph_id":"para_264"},{"text":"these three conditions are present, a de facto “agreement” is","paragraph_id":"para_265"},{"text":"created that permits customers to submit claims to FINRA’s","paragraph_id":"para_266"},{"text":"arbitral forums. Reno, 747 F.3d at 739 n.1. Pursuant to the","paragraph_id":"para_267"},{"text":"Federal Arbitration Act (FAA), such agreements to arbitrate","paragraph_id":"para_268"},{"text":"are “valid, irrevocable, and enforceable, save upon such","paragraph_id":"para_269"},{"text":"grounds as exist at law or in equity for the revocation of any","paragraph_id":"para_270"},{"text":"contract.” 9 U.S.C. § 2; see also Reno, 747 F.3d at 739.1","paragraph_id":"para_271"},{"text":"1 The NASDA Code of Arbitration, which was the predecessor to the","paragraph_id":"para_272"},{"text":"FINRA Code, included NASDA Rule 10301, a rule regarding arbitration","paragraph_id":"para_273"},{"text":"that is analogous to FINRA Rule 12200. FINRA has clarified that,","paragraph_id":"para_274"},{"text":"despite surface-level amendments to the language of the two rules, there","paragraph_id":"para_275"},{"text":"is no substantive difference between them. See Comparison Chart of","paragraph_id":"para_276"},{"text":"10 OPPENHEIMER & CO. INC. V. MITCHELL","paragraph_id":"para_277"},{"text":"FINRA’s arbitral forums offer a relatively efficient and","paragraph_id":"para_278"},{"text":"low-cost pathway for conflict resolution. According to the","paragraph_id":"para_279"},{"text":"amicus brief of the Securities Industry and Financial Markets","paragraph_id":"para_280"},{"text":"Association (SIFMA), FINRA arbitration “incorporates","paragraph_id":"para_281"},{"text":"substantive and procedural protections comparable to court-","paragraph_id":"para_282"},{"text":"based litigation, and thereby ensures fair case outcomes for","paragraph_id":"para_283"},{"text":"retail customers.” Kevin Carroll, Securities Arbitration","paragraph_id":"para_284"},{"text":"Works Effectively and Benefits Investors, Sec. Indus. & Fin.","paragraph_id":"para_285"},{"text":"Mkts. Ass’n (Oct. 5, 2021),","paragraph_id":"para_286"},{"text":"https://www.sifma.org/resources/news/blog/securities-","paragraph_id":"para_287"},{"text":"arbitration-system-works-effectively-and-benefits-investors","paragraph_id":"para_288"},{"text":"[hereinafter SIFMA Arbitration Article]. Further, FINRA","paragraph_id":"para_289"},{"text":"arbitration provides for “faster resolution of disputes” than","paragraph_id":"para_290"},{"text":"court-based litigation and “reduces legal costs.” Kevin M.","paragraph_id":"para_291"},{"text":"Carroll et al., White Paper on Arbitration in the Securities","paragraph_id":"para_292"},{"text":"Industry 50 (2007), https://www.sifma.org/wp-","paragraph_id":"para_293"},{"text":"content/uploads/2017/05/sifma-sifmacl-white-paper-on-","paragraph_id":"para_294"},{"text":"arbitration-in-the-securities-industry.pdf. According to","paragraph_id":"para_295"},{"text":"SIFMA, these qualities make FINRA arbitration “less","paragraph_id":"para_296"},{"text":"expensive, more expedient, and just as fair as court-based","paragraph_id":"para_297"},{"text":"litigation.” SIFMA Arbitration Article at 4.","paragraph_id":"para_298"},{"text":"JURISDICTION AND STANDARD OF REVIEW","paragraph_id":"para_299"},{"text":"We have jurisdiction to review the district court’s","paragraph_id":"para_300"},{"text":"summary judgment ruling pursuant to 28 U.S.C. § 1291.","paragraph_id":"para_301"},{"text":"Old and New NASD Arbitration Codes for Industry Disputes, Fin. Indus.","paragraph_id":"para_302"},{"text":"Regul. Auth., www.finra.org/sites/default/files/","paragraph_id":"para_303"},{"text":"RuleFiling/p018369.pdf (last visited April 16, 2025). For that reason,","paragraph_id":"para_304"},{"text":"we follow other courts in concluding that “[t]he cases interpreting and","paragraph_id":"para_305"},{"text":"applying [NASDA] Rule 10301 apply with equal force to [FINRA] Rule","paragraph_id":"para_306"},{"text":"12200.” Berthel Fisher & Co. Fin. Servs., Inc. v. Larmon, 695 F.3d 749,","paragraph_id":"para_307"},{"text":"752 n.3 (8th Cir. 2012) (quoting Herbert J. Sims & Co. v. Roven, 548 F.","paragraph_id":"para_308"},{"text":"Supp. 2d 759, 763 n.2 (N.D. Cal. 2008)); Waterford Inv. Servs., Inc. v.","paragraph_id":"para_309"},{"text":"Bosco, 682 F.3d 348, 353 n.5 (4th Cir. 2012).","paragraph_id":"para_310"},{"text":"OPPENHEIMER & CO. INC. V. MITCHELL 11","paragraph_id":"para_311"},{"text":"Richardson-Merrell, Inc. v. Koller, 472 U.S. 424, 429–30","paragraph_id":"para_312"},{"text":"(1985). “We review de novo a district court’s grant or denial","paragraph_id":"para_313"},{"text":"of summary judgment.” Botosan v. Paul McNally Realty,","paragraph_id":"para_314"},{"text":"216 F.3d 827, 830 (9th Cir. 2000). We review for abuse of","paragraph_id":"para_315"},{"text":"discretion a district court’s decision to grant or deny","paragraph_id":"para_316"},{"text":"permanent injunctive relief. eBay Inc. v. MercExchange,","paragraph_id":"para_317"},{"text":"LLC, 547 U.S. 388, 391 (2006); L.A. Haven Hospice, Inc. v.","paragraph_id":"para_318"},{"text":"Sebelius, 638 F.3d 644, 654 (9th Cir. 2011).","paragraph_id":"para_319"},{"text":"ANALYSIS","paragraph_id":"para_320"},{"text":"The central issue raised by this appeal is whether","paragraph_id":"para_321"},{"text":"Defendants may arbitrate their claims against Oppenheimer.","paragraph_id":"para_322"},{"text":"On the one hand, “a party cannot be required to submit to","paragraph_id":"para_323"},{"text":"arbitration any dispute which he has not agreed so to","paragraph_id":"para_324"},{"text":"submit.” AT&T Techs., Inc. v. Commc’ns Workers of Am.,","paragraph_id":"para_325"},{"text":"475 U.S. 643, 648 (1986) (quoting United Steelworkers of","paragraph_id":"para_326"},{"text":"Am. v. Warrior & Gulf Nav. Co., 363 U.S. 574, 582 (1960)).","paragraph_id":"para_327"},{"text":"On the other hand, as noted, FINRA Rule 12200 obligates","paragraph_id":"para_328"},{"text":"FINRA members like Oppenheimer to submit any “dispute","paragraph_id":"para_329"},{"text":"under the [FINRA] Code” to arbitration when requested by","paragraph_id":"para_330"},{"text":"“customer[s].” Defendants have plainly requested","paragraph_id":"para_331"},{"text":"arbitration, and it is undisputed that their claims, which","paragraph_id":"para_332"},{"text":"concern Oppenheimer’s supervisory obligations under","paragraph_id":"para_333"},{"text":"FINRA, fall within the ambit of a “dispute under the","paragraph_id":"para_334"},{"text":"[FINRA] Code.” Therefore, whether Defendants may force","paragraph_id":"para_335"},{"text":"Oppenheimer into one of FINRA’s arbitral forums turns","paragraph_id":"para_336"},{"text":"solely on the question whether Defendants are “customers”","paragraph_id":"para_337"},{"text":"of Oppenheimer for purposes of Rule 12200.","paragraph_id":"para_338"},{"text":"Defendants, who concede that they have no direct","paragraph_id":"para_339"},{"text":"relationship with Oppenheimer, submit only one theory","paragraph_id":"para_340"},{"text":"through which they might be its customers: They argue that","paragraph_id":"para_341"},{"text":"they have engaged in transactions with Woods, who acts as","paragraph_id":"para_342"},{"text":"an “associated person” of Oppenheimer for purposes of the","paragraph_id":"para_343"},{"text":"12 OPPENHEIMER & CO. INC. V. MITCHELL","paragraph_id":"para_344"},{"text":"FINRA Code. The validity of this theory, which the district","paragraph_id":"para_345"},{"text":"court rejected, occupies the bulk of our analysis here.","paragraph_id":"para_346"},{"text":"Defendants also raise two additional challenges to the","paragraph_id":"para_347"},{"text":"district court’s ruling. First, they argue that, even if they are","paragraph_id":"para_348"},{"text":"not “customers” of Oppenheimer, the district court abused","paragraph_id":"para_349"},{"text":"its discretion by granting a permanent injunction. Second,","paragraph_id":"para_350"},{"text":"they argue that the district court committed legal error by","paragraph_id":"para_351"},{"text":"imposing unsupported legal requirements and making","paragraph_id":"para_352"},{"text":"erroneous factual findings.","paragraph_id":"para_353"},{"text":"We evaluate these arguments in turn. Because we","paragraph_id":"para_354"},{"text":"conclude that they are without merit, we affirm in full the","paragraph_id":"para_355"},{"text":"decision below.","paragraph_id":"para_356"},{"text":"I. Defendants Are Not “Customers” of Oppenheimer.","paragraph_id":"para_357"},{"text":"The first, and primary, question raised by this appeal is","paragraph_id":"para_358"},{"text":"whether Defendants are customers of Oppenheimer for","paragraph_id":"para_359"},{"text":"purposes of FINRA Rule 12200. Defendants concede that","paragraph_id":"para_360"},{"text":"they are not direct customers because they have not","paragraph_id":"para_361"},{"text":"transacted with Oppenheimer. Defendants nevertheless","paragraph_id":"para_362"},{"text":"submit that they are indirect customers of Oppenheimer","paragraph_id":"para_363"},{"text":"because they are customers of Woods, one of","paragraph_id":"para_364"},{"text":"Oppenheimer’s associated persons. The viability of this","paragraph_id":"para_365"},{"text":"theory turns on two issues: whether FINRA Rule 12200","paragraph_id":"para_366"},{"text":"applies to customers of associated persons, and whether","paragraph_id":"para_367"},{"text":"Defendants are actually customers of Woods.","paragraph_id":"para_368"},{"text":"a. An Investor Who Purchases Commodities or","paragraph_id":"para_369"},{"text":"Services from an “Associated Person” of a","paragraph_id":"para_370"},{"text":"FINRA Member Is a “Customer” of the","paragraph_id":"para_371"},{"text":"Member for Purposes of FINRA Rule 12200.","paragraph_id":"para_372"},{"text":"As noted, a FINRA member must arbitrate a dispute if:","paragraph_id":"para_373"},{"text":"(1) “[r]equested by the customer”; (2) “[t]he dispute is","paragraph_id":"para_374"},{"text":"between a customer and a member or associated person of a","paragraph_id":"para_375"},{"text":"OPPENHEIMER & CO. INC. V. MITCHELL 13","paragraph_id":"para_376"},{"text":"member”; and (3) “[t]he dispute arises in connection with","paragraph_id":"para_377"},{"text":"the business activities of the member or the associated","paragraph_id":"para_378"},{"text":"person.” FINRA Rule 12200. This rule plainly provides the","paragraph_id":"para_379"},{"text":"customer of a FINRA member with the right to request and","paragraph_id":"para_380"},{"text":"receive arbitration. Reno, 747 F.3d at 739. Yet “ambiguity","paragraph_id":"para_381"},{"text":"results from the fact that the rule does not specify with whom","paragraph_id":"para_382"},{"text":"the customer must conduct business. That is, as written, the","paragraph_id":"para_383"},{"text":"rule leaves open the possibility that a dispute could arise","paragraph_id":"para_384"},{"text":"between ‘a [member’s] customer and a member’ or between","paragraph_id":"para_385"},{"text":"‘[an associated person’s] customer and a member.’”","paragraph_id":"para_386"},{"text":"Washington Square Sec., Inc. v. Aune, 385 F.3d 432, 436","paragraph_id":"para_387"},{"text":"(4th Cir. 2004) (alteration in original); see also John","paragraph_id":"para_388"},{"text":"Hancock Life Ins. Co. v. Wilson, 254 F.3d 48, 59 (2d Cir.","paragraph_id":"para_389"},{"text":"2001). The FINRA Code offers little insight into this","paragraph_id":"para_390"},{"text":"ambiguity. Its separate rule providing “definitions” of terms","paragraph_id":"para_391"},{"text":"used throughout the Code defines “customer” only in the","paragraph_id":"para_392"},{"text":"negative: “A customer shall not include a broker or dealer.”","paragraph_id":"para_393"},{"text":"FINRA Rule 12100(k).","paragraph_id":"para_394"},{"text":"This ambiguity has important ramifications for the group","paragraph_id":"para_395"},{"text":"of “customers” who are entitled to FINRA arbitration. Only","paragraph_id":"para_396"},{"text":"the large companies that register for FINRA membership are","paragraph_id":"para_397"},{"text":"FINRA members. By contrast, an “associated person” of a","paragraph_id":"para_398"},{"text":"FINRA member includes “any employee of the [member],","paragraph_id":"para_399"},{"text":"except any person whose functions are solely clerical or","paragraph_id":"para_400"},{"text":"ministerial.” FINRA Rule 1011(b). To qualify as a","paragraph_id":"para_401"},{"text":"“customer” for purposes of Rule 12200, must an individual","paragraph_id":"para_402"},{"text":"transact directly with the FINRA member—the entity—","paragraph_id":"para_403"},{"text":"itself? Or may an individual merely transact with one of the","paragraph_id":"para_404"},{"text":"FINRA member’s many non-clerical, non-ministerial","paragraph_id":"para_405"},{"text":"employees—finance professionals, investment advisers, and","paragraph_id":"para_406"},{"text":"anyone else in the member’s substantive employ? This","paragraph_id":"para_407"},{"text":"question not only affects which customers may arbitrate but","paragraph_id":"para_408"},{"text":"which claims they may bring to the fore. As Defendants’","paragraph_id":"para_409"},{"text":"14 OPPENHEIMER & CO. INC. V. MITCHELL","paragraph_id":"para_410"},{"text":"case illustrates, “[i]t is possible that an ‘associated person’","paragraph_id":"para_411"},{"text":"of a FINRA member could have an independent company.”","paragraph_id":"para_412"},{"text":"Centaurus Fin., Inc. v. Ausloos, No. 19-CV-243, 2019 WL","paragraph_id":"para_413"},{"text":"2027271, at *5 (E.D. Wis. May 8, 2019). Does Rule 12200","paragraph_id":"para_414"},{"text":"entitle a customer to arbitrate against a FINRA member","paragraph_id":"para_415"},{"text":"“simply because he purchased [a] good or service from [that","paragraph_id":"para_416"},{"text":"member’s] ‘associated person’ acting on behalf of his or her","paragraph_id":"para_417"},{"text":"own independent company[?]” Id.","paragraph_id":"para_418"},{"text":"The district court answered this question in the","paragraph_id":"para_419"},{"text":"affirmative, and Defendants urge us to reach the same","paragraph_id":"para_420"},{"text":"conclusion. As they note, the FINRA Code offers several","paragraph_id":"para_421"},{"text":"clues that customers are not restricted to those who transact","paragraph_id":"para_422"},{"text":"with FINRA members. First, as noted, the Code’s own","paragraph_id":"para_423"},{"text":"definition of “customer” is non-restrictive. See FINRA Rule","paragraph_id":"para_424"},{"text":"12100(k). That the term is defined to exclude brokers and","paragraph_id":"para_425"},{"text":"dealers, but not defined with reference to FINRA members,","paragraph_id":"para_426"},{"text":"hints at a broad construction. An online FINRA glossary,","paragraph_id":"para_427"},{"text":"though not expressly incorporated by the FINRA Code,","paragraph_id":"para_428"},{"text":"suggests the same conclusion. See UBS Fin. Servs., Inc., 660","paragraph_id":"para_429"},{"text":"F.3d at 650. It defines an “investor”—the prototypical","paragraph_id":"para_430"},{"text":"“customer” of a securities firm—as “[a] person or entity . . .","paragraph_id":"para_431"},{"text":"that transacts business with any member firm and/or","paragraph_id":"para_432"},{"text":"associated person.” Dispute Resolution Glossary, Fin.","paragraph_id":"para_433"},{"text":"Indus. Regul. Auth., https://www.finra.org/","paragraph_id":"para_434"},{"text":"arbitration-mediation/about/arbitration-vs-","paragraph_id":"para_435"},{"text":"mediation/dispute-resolution-glossary (last visited April 16,","paragraph_id":"para_436"},{"text":"2025). If customers are defined to include all non-brokers","paragraph_id":"para_437"},{"text":"and non-dealers, then customers must include investors,","paragraph_id":"para_438"},{"text":"even those that invest with associated persons.","paragraph_id":"para_439"},{"text":"Additional signals may be discerned from the text of","paragraph_id":"para_440"},{"text":"Rule 12200, which makes no apparent distinction between","paragraph_id":"para_441"},{"text":"individuals who transact with members as opposed to their","paragraph_id":"para_442"},{"text":"associated persons. The rule first limits arbitrable claims to","paragraph_id":"para_443"},{"text":"OPPENHEIMER & CO. INC. V. MITCHELL 15","paragraph_id":"para_444"},{"text":"those arising from disputes “between . . . customer[s]","paragraph_id":"para_445"},{"text":"and . . . member[s] or associated person[s].” FINRA Rule","paragraph_id":"para_446"},{"text":"12200 (emphasis added). It then clarifies that these disputes","paragraph_id":"para_447"},{"text":"may “arise[] in connection with the business activities of the","paragraph_id":"para_448"},{"text":"member or the associated person.” Id. (emphasis added).","paragraph_id":"para_449"},{"text":"These signals suggest an intent to encompass the claims of","paragraph_id":"para_450"},{"text":"those who transact with associated persons. Nevertheless, to","paragraph_id":"para_451"},{"text":"the extent that the signals are truly ambiguous, because Rule","paragraph_id":"para_452"},{"text":"12200 “constitutes an ‘agreement in writing’ under the","paragraph_id":"para_453"},{"text":"FAA,” Reno, 747 F.3d at 739 n.1, we “appl[y] ‘the federal","paragraph_id":"para_454"},{"text":"policy favoring arbitration’ when interpreting this","paragraph_id":"para_455"},{"text":"provision.” Waterford Inv. Servs., Inc. v. Bosco, 682 F.3d","paragraph_id":"para_456"},{"text":"348, 353 (4th Cir. 2012) (quoting Aune, 385 F.3d at 435);","paragraph_id":"para_457"},{"text":"see also Wachovia Bank, Nat. Ass’n v. VCG Special","paragraph_id":"para_458"},{"text":"Opportunities Master Fund, Ltd., 661 F.3d 164, 171 (2d Cir.","paragraph_id":"para_459"},{"text":"2011); Multi-Fin. Sec. Corp. v. King, 386 F.3d 1364, 1367","paragraph_id":"para_460"},{"text":"(11th Cir. 2004). Applying this guidance, we resolve “any","paragraph_id":"para_461"},{"text":"doubts concerning the scope of arbitrable issues . . . in favor","paragraph_id":"para_462"},{"text":"of arbitration”—here, in favor of reading Rule 12200","paragraph_id":"para_463"},{"text":"expansively to extend to those who transact with associated","paragraph_id":"para_464"},{"text":"persons. Moses H. Cone Mem’l Hosp. v. Mercury Constr.","paragraph_id":"para_465"},{"text":"Corp., 460 U.S. 1, 24–25 (1983).","paragraph_id":"para_466"},{"text":"Employing similar logic, most of our sister circuits that","paragraph_id":"para_467"},{"text":"have addressed this question have concluded that Rule","paragraph_id":"para_468"},{"text":"12200 applies to the customers of associated persons. The","paragraph_id":"para_469"},{"text":"Second Circuit was an early leader in this regard. In John","paragraph_id":"para_470"},{"text":"Hancock, it applied processes of statutory interpretation and","paragraph_id":"para_471"},{"text":"construction before concluding that “the customer of an","paragraph_id":"para_472"},{"text":"associated person, asserting a claim arising out of the","paragraph_id":"para_473"},{"text":"associated person’s business,” must not be “prohibited”","paragraph_id":"para_474"},{"text":"from “compelling a [FINRA] member to arbitrate under","paragraph_id":"para_475"},{"text":"Rule [12200].” 254 F.3d at 59. The Second Circuit noted","paragraph_id":"para_476"},{"text":"that Rule 12200 was “not only susceptible of [this]","paragraph_id":"para_477"},{"text":"16 OPPENHEIMER & CO. INC. V. MITCHELL","paragraph_id":"para_478"},{"text":"interpretation . . . but require[d] [it].” Id. It rested its","paragraph_id":"para_479"},{"text":"conclusion in part on federal policy under the FAA, and in","paragraph_id":"para_480"},{"text":"part on its determination that “nothing in the language of","paragraph_id":"para_481"},{"text":"Rule [12200], or any other provision of the [FINRA]","paragraph_id":"para_482"},{"text":"Code, . . . compel[led] . . . (or even suggest[ed])” a contrary","paragraph_id":"para_483"},{"text":"result. Id.","paragraph_id":"para_484"},{"text":"Other federal courts of appeal followed the Second","paragraph_id":"para_485"},{"text":"Circuit’s lead. The Sixth Circuit, reasoning that “Rule","paragraph_id":"para_486"},{"text":"[12200] [does not] require[] that defendant-investors be","paragraph_id":"para_487"},{"text":"direct customers of [a FINRA member],” determined that","paragraph_id":"para_488"},{"text":"“an agent or representative of a financial services firm is an","paragraph_id":"para_489"},{"text":"‘associated person’ under [FINRA] Rule [12200] such that a","paragraph_id":"para_490"},{"text":"relationship with the agent entitles the investor to the","paragraph_id":"para_491"},{"text":"arbitration process.” Vestax Sec. Corp. v. McWood, 280","paragraph_id":"para_492"},{"text":"F.3d 1078, 1082 (6th Cir. 2002). The Eleventh Circuit has","paragraph_id":"para_493"},{"text":"likewise affirmed that “the plain language of Rule [12200]","paragraph_id":"para_494"},{"text":"supports the view that the term ‘customer’ refers to either a","paragraph_id":"para_495"},{"text":"member’s or an associated person’s customer, affording","paragraph_id":"para_496"},{"text":"customers of an associated person a right to compel","paragraph_id":"para_497"},{"text":"arbitration against a member.” King, 386 F.3d at 1369. The","paragraph_id":"para_498"},{"text":"Eight Circuit, for its part, has described the “proposition that","paragraph_id":"para_499"},{"text":"customers of associated persons of a firm may compel","paragraph_id":"para_500"},{"text":"arbitration with the firm” as “unremarkable.” Berthel Fisher","paragraph_id":"para_501"},{"text":"& Co. Fin. Servs. v. Larmon, 695 F.3d 749, 753 (8th Cir.","paragraph_id":"para_502"},{"text":"2012). At least three other courts of appeal are in accord,","paragraph_id":"para_503"},{"text":"see Waterford, 682 F.3d at 353; Cal. Fina Group, Inc. v.","paragraph_id":"para_504"},{"text":"Herrin, 379 F.3d 311, 318 (5th Cir. 2004); Miller v. Flume,","paragraph_id":"para_505"},{"text":"139 F.3d 1130, 1136 (7th Cir. 1998), and Oppenheimer","paragraph_id":"para_506"},{"text":"points to none that has reached a different conclusion.","paragraph_id":"para_507"},{"text":"Oppenheimer nevertheless asserts that our circuit, which","paragraph_id":"para_508"},{"text":"has not yet addressed this question, is required by our","paragraph_id":"para_509"},{"text":"precedent to reach a different result. As it observes, although","paragraph_id":"para_510"},{"text":"we have never opined on whether customers include those","paragraph_id":"para_511"},{"text":"OPPENHEIMER & CO. INC. V. MITCHELL 17","paragraph_id":"para_512"},{"text":"who transact with associated persons, we have opined on the","paragraph_id":"para_513"},{"text":"kinds of transactions in which customers must engage.","paragraph_id":"para_514"},{"text":"Specifically, in Reno, we held that “a ‘customer’ is a non-","paragraph_id":"para_515"},{"text":"broker and non-dealer who purchases commodities or","paragraph_id":"para_516"},{"text":"services from a FINRA member in the course of the","paragraph_id":"para_517"},{"text":"member’s FINRA-regulated business activities, i.e., the","paragraph_id":"para_518"},{"text":"member’s investment banking and securities business","paragraph_id":"para_519"},{"text":"activities.” 747 F.3d at 741. Reno involved a claimant that","paragraph_id":"para_520"},{"text":"had employed a FINRA member as an underwriter to issue","paragraph_id":"para_521"},{"text":"debt in the form of auction rate securities. Id. at 735–36.","paragraph_id":"para_522"},{"text":"Responding to the FINRA member’s assertion that the","paragraph_id":"para_523"},{"text":"defendant “was not a ‘customer’ because their relationship","paragraph_id":"para_524"},{"text":"did not relate directly to investment or brokerage services,”","paragraph_id":"para_525"},{"text":"we concluded that the defendant was a customer because the","paragraph_id":"para_526"},{"text":"FINRA member “provided [it with] services in the course of","paragraph_id":"para_527"},{"text":"its securities business activities.” Id. at 739, 741.","paragraph_id":"para_528"},{"text":"Although Reno is relevant, it does not control this case","paragraph_id":"para_529"},{"text":"because it did not raise or address the factually distinct","paragraph_id":"para_530"},{"text":"circumstances presented here. Reno arose in the context of","paragraph_id":"para_531"},{"text":"a dispute between an individual and a FINRA member, and","paragraph_id":"para_532"},{"text":"it did not involve any associated persons. Therefore, it did","paragraph_id":"para_533"},{"text":"not reach or resolve the application of Rule 12200 among","paragraph_id":"para_534"},{"text":"customers of associated persons. See id. at 741. This","paragraph_id":"para_535"},{"text":"rationale also explains the opinion’s holding: Although","paragraph_id":"para_536"},{"text":"Reno defined “customers” as those who transact with","paragraph_id":"para_537"},{"text":"“FINRA member[s],” this definition is not comprehensive","paragraph_id":"para_538"},{"text":"and does not foreclose the application of Rule 12200 to","paragraph_id":"para_539"},{"text":"customers of associated persons. Id. The Second Circuit","paragraph_id":"para_540"},{"text":"reached the same conclusion when asked to reconcile its","paragraph_id":"para_541"},{"text":"decision in John Hancock, which focused on the customers","paragraph_id":"para_542"},{"text":"of associated persons, with prior opinions that had focused","paragraph_id":"para_543"},{"text":"on the customers of FINRA members. 254 F.3d at 60. As it","paragraph_id":"para_544"},{"text":"explained, those prior opinions “d[id] not limit [the court’s]","paragraph_id":"para_545"},{"text":"18 OPPENHEIMER & CO. INC. V. MITCHELL","paragraph_id":"para_546"},{"text":"application of the [FINRA] Code to the entirely distinct set","paragraph_id":"para_547"},{"text":"of facts presented [in John Hancock] any more than [the]","paragraph_id":"para_548"},{"text":"finding that a confession is sufficient evidence of a murder","paragraph_id":"para_549"},{"text":"forecloses a subsequent finding that the testimony of an","paragraph_id":"para_550"},{"text":"eyewitness is sufficient as well.” Id.","paragraph_id":"para_551"},{"text":"For the foregoing reasons, we hold that a “customer,” for","paragraph_id":"para_552"},{"text":"purposes of Rule 12200, includes any non-broker and non-","paragraph_id":"para_553"},{"text":"dealer who purchases commodities or services from a","paragraph_id":"para_554"},{"text":"FINRA member or its associated person. Reno, 747 F.3d at","paragraph_id":"para_555"},{"text":"741. This holding not only aligns with Reno and the rulings","paragraph_id":"para_556"},{"text":"of our sister circuits but further serves the purposes of Rule","paragraph_id":"para_557"},{"text":"12200 by ensuring that access to arbitration is guided by a","paragraph_id":"para_558"},{"text":"clear and administrable rule. As SIFMA notes, arbitration is","paragraph_id":"para_559"},{"text":"valuable because it entails “lower costs, greater efficiency","paragraph_id":"para_560"},{"text":"and speed, and the ability to choose expert adjudicators to","paragraph_id":"para_561"},{"text":"resolve specialized disputes.” Stolt-Nielsen S.A. v.","paragraph_id":"para_562"},{"text":"AnimalFeeds Int’l Corp., 559 U.S. 662, 685 (2010). But if","paragraph_id":"para_563"},{"text":"proceeding to arbitration were to require a fact-intensive","paragraph_id":"para_564"},{"text":"analysis of “customer status,” the “sprawling litigation” that","paragraph_id":"para_565"},{"text":"would likely result could “defeat[] the express goals of","paragraph_id":"para_566"},{"text":"arbitration to yield economical and swift outcomes.”","paragraph_id":"para_567"},{"text":"Citigroup Glob. Mkts. Inc. v. Abbar, 761 F.3d 268, 276 (2d","paragraph_id":"para_568"},{"text":"Cir. 2014). The bright-line definition of “customer”","paragraph_id":"para_569"},{"text":"contemplated here addresses this concern by ensuring that","paragraph_id":"para_570"},{"text":"access to arbitration depends only on the question whether","paragraph_id":"para_571"},{"text":"an individual transacted with a FINRA member or its non-","paragraph_id":"para_572"},{"text":"clerical, non-ministerial employee. See Reno, 747 F.3d at","paragraph_id":"para_573"},{"text":"741; FINRA Rule 12200. To answer this question, “[t]he","paragraph_id":"para_574"},{"text":"only relevant inquiry . . . is whether an account was opened","paragraph_id":"para_575"},{"text":"or a purchase made.” Abbar, 761 F.3d at 276.","paragraph_id":"para_576"},{"text":"OPPENHEIMER & CO. INC. V. MITCHELL 19","paragraph_id":"para_577"},{"text":"b. Defendants Did Not Transact with Woods.","paragraph_id":"para_578"},{"text":"Applying this understanding of the FINRA Code,","paragraph_id":"para_579"},{"text":"Defendants argue that they are customers of Woods, and","paragraph_id":"para_580"},{"text":"therefore of Oppenheimer, because they purchased stock","paragraph_id":"para_581"},{"text":"from Woods during the time that he was employed by","paragraph_id":"para_582"},{"text":"Oppenheimer. The parties do not dispute that Defendants","paragraph_id":"para_583"},{"text":"are not brokers or dealers. They also do not dispute that","paragraph_id":"para_584"},{"text":"Woods was an “associated person” of Oppenheimer at the","paragraph_id":"para_585"},{"text":"time Defendants’ claims arose because Woods was, at that","paragraph_id":"para_586"},{"text":"time, employed by Oppenheimer in a substantive capacity.","paragraph_id":"para_587"},{"text":"See FINRA Rule 1011(b). Therefore, pursuant to our","paragraph_id":"para_588"},{"text":"understanding that FINRA Rule 12200 encompasses the","paragraph_id":"para_589"},{"text":"claims of customers of associated persons, Defendants are","paragraph_id":"para_590"},{"text":"entitled to FINRA arbitration so long as they can","paragraph_id":"para_591"},{"text":"demonstrate a customer relationship with Woods.","paragraph_id":"para_592"},{"text":"The district court concluded that Defendants were not so","paragraph_id":"para_593"},{"text":"entitled because they could not make the necessary showing","paragraph_id":"para_594"},{"text":"of a customer relationship. As noted, Defendants’ specific","paragraph_id":"para_595"},{"text":"claim is that “they purchased a security”—their investments","paragraph_id":"para_596"},{"text":"in Horizon—“from Woods while he was an associated","paragraph_id":"para_597"},{"text":"person of Oppenheimer.” However, the district court found","paragraph_id":"para_598"},{"text":"that “there simply is no evidence of Woods’ participation","paragraph_id":"para_599"},{"text":"such that the Court could conclude he sold Defendants any","paragraph_id":"para_600"},{"text":"commodities or services as required to be ‘customers’ under","paragraph_id":"para_601"},{"text":"FINRA Rule 12200.” In reaching this conclusion, the","paragraph_id":"para_602"},{"text":"district court emphasized the level of interaction that","paragraph_id":"para_603"},{"text":"Defendants had with Woods, the owner of Horizon and","paragraph_id":"para_604"},{"text":"Southport, as compared with Mooney, Defendants’","paragraph_id":"para_605"},{"text":"investment adviser at Southport. The district court","paragraph_id":"para_606"},{"text":"concluded that Mooney was the individual from whom","paragraph_id":"para_607"},{"text":"Defendants purchased their Horizon investments—not","paragraph_id":"para_608"},{"text":"Woods.","paragraph_id":"para_609"},{"text":"20 OPPENHEIMER & CO. INC. V. MITCHELL","paragraph_id":"para_610"},{"text":"We agree. As the district court noted and the record","paragraph_id":"para_611"},{"text":"confirms, Woods did not reach out to Defendants, solicit","paragraph_id":"para_612"},{"text":"them to purchase investments, advise them about Horizon,","paragraph_id":"para_613"},{"text":"or send them information or logistical materials. Nor did","paragraph_id":"para_614"},{"text":"Woods collect payment from Defendants, effectuate their","paragraph_id":"para_615"},{"text":"investments, or earn any fees or commission on their","paragraph_id":"para_616"},{"text":"spending. Simply put, Woods had no role in recruiting,","paragraph_id":"para_617"},{"text":"facilitating, or causing Defendants’ investments in Horizon","paragraph_id":"para_618"},{"text":"to occur. Instead, it was Mooney, Southport’s registered","paragraph_id":"para_619"},{"text":"representative, who did all of these things. He was the","paragraph_id":"para_620"},{"text":"individual responsible for bringing in Defendants’ business,","paragraph_id":"para_621"},{"text":"advising them about Horizon, carrying out their purchase of","paragraph_id":"para_622"},{"text":"securities, and generally overseeing their investment.","paragraph_id":"para_623"},{"text":"Mooney was also Defendants’ sole contact as they went","paragraph_id":"para_624"},{"text":"through the process of investing. Other than a single phone","paragraph_id":"para_625"},{"text":"call between Woods and the Mitchells—a conversation that","paragraph_id":"para_626"},{"text":"Mooney helped arrange, and during which Woods “backed","paragraph_id":"para_627"},{"text":"up exactly what . . . Mooney” had already told Defendants—","paragraph_id":"para_628"},{"text":"Defendants had no contact with Woods and communicated","paragraph_id":"para_629"},{"text":"entirely with Mooney about their investments.2","paragraph_id":"para_630"},{"text":"2 As Defendants note, the district court failed to account for this","paragraph_id":"para_631"},{"text":"conversation when noting that “[n]one of the defendants testified that","paragraph_id":"para_632"},{"text":"they spoke with Woods or that Woods acted as their broker or advisor in","paragraph_id":"para_633"},{"text":"making their investments in Horizon.” As described, the Mitchells did","paragraph_id":"para_634"},{"text":"speak with Woods, and their conversation with Woods was substantive:","paragraph_id":"para_635"},{"text":"The Mitchells “asked . . . Woods questions about the [Horizon]","paragraph_id":"para_636"},{"text":"investment as part of [their] due diligence into the program,” and Woods","paragraph_id":"para_637"},{"text":"provided answers that encouraged the Mitchells to place their first trades.","paragraph_id":"para_638"},{"text":"Therefore, the district court’s statement that Defendants failed to","paragraph_id":"para_639"},{"text":"“testif[y] that they spoke with Woods . . . in making their investments in","paragraph_id":"para_640"},{"text":"Horizon” is inaccurate. Nevertheless, this error is harmless because","paragraph_id":"para_641"},{"text":"Defendants and Woods had no other interactions that were material to","paragraph_id":"para_642"},{"text":"their investments in Horizon. Therefore, even considering the phone","paragraph_id":"para_643"},{"text":"OPPENHEIMER & CO. INC. V. MITCHELL 21","paragraph_id":"para_644"},{"text":"Based on this cumulative evidence, it is clear that “it was","paragraph_id":"para_645"},{"text":"Mooney who facilitated and caused [Defendants’]","paragraph_id":"para_646"},{"text":"investments to occur, not Woods.” Mooney, unlike Woods,","paragraph_id":"para_647"},{"text":"was not employed by Oppenheimer during the time he","paragraph_id":"para_648"},{"text":"transacted with Defendants. 3 Therefore, because","paragraph_id":"para_649"},{"text":"Defendants were not customers of Woods, and because the","paragraph_id":"para_650"},{"text":"only individual to whom Defendants were customers was not","paragraph_id":"para_651"},{"text":"an “associated person” of Oppenheimer, there is no basis to","paragraph_id":"para_652"},{"text":"conclude that Defendants were customers of Oppenheimer.","paragraph_id":"para_653"},{"text":"See FINRA Rule 12200. This would appear to resolve","paragraph_id":"para_654"},{"text":"Defendants’ claims.","paragraph_id":"para_655"},{"text":"Defendants nevertheless suggest one final way in which","paragraph_id":"para_656"},{"text":"their transactions with Horizon, Mooney, and Woods might","paragraph_id":"para_657"},{"text":"be tied to Oppenheimer. They argue that by investing in","paragraph_id":"para_658"},{"text":"Horizon, an entity that Woods ran and controlled,","paragraph_id":"para_659"},{"text":"Defendants effectively invested in an “alter ego” of Woods","paragraph_id":"para_660"},{"text":"and therefore, by extension, became Woods’s customers.","paragraph_id":"para_661"},{"text":"This argument depends on the unusual suggestion that an","paragraph_id":"para_662"},{"text":"individual may become the “customer” of an associated","paragraph_id":"para_663"},{"text":"person of a FINRA member merely by purchasing stock in a","paragraph_id":"para_664"},{"text":"company that the associated person owns or substantially","paragraph_id":"para_665"},{"text":"controls. See Ranza v. Nike, Inc., 793 F.3d 1059, 1073 (9th","paragraph_id":"para_666"},{"text":"Cir. 2015).","paragraph_id":"para_667"},{"text":"We reject Defendants’ “alter ego” theory. As a threshold","paragraph_id":"para_668"},{"text":"matter, the district court expressly discarded this theory, both","paragraph_id":"para_669"},{"text":"interaction between the Mitchells and Woods, there is no basis to","paragraph_id":"para_670"},{"text":"conclude that the Mitchells—or the Hoppers, who had no contact with","paragraph_id":"para_671"},{"text":"Woods—were Woods’s customers.","paragraph_id":"para_672"},{"text":"3 Mooney was employed by Oppenheimer from 2007 to 2010, years","paragraph_id":"para_673"},{"text":"before Defendants’ claims arose. Defendants make no contention that","paragraph_id":"para_674"},{"text":"Mooney’s prior employment relationship with Oppenheimer renders him","paragraph_id":"para_675"},{"text":"an “associated person” for purposes of their claims.","paragraph_id":"para_676"},{"text":"22 OPPENHEIMER & CO. INC. V. MITCHELL","paragraph_id":"para_677"},{"text":"in connection with Defendants’ motion for summary","paragraph_id":"para_678"},{"text":"judgment and their motion for a preliminary injunction.","paragraph_id":"para_679"},{"text":"Because Defendants do not clearly challenge that conclusion","paragraph_id":"para_680"},{"text":"in their opening brief, it is waived. Dennis v. BEH–1, LLC,","paragraph_id":"para_681"},{"text":"520 F.3d 1066, 1069 n.1 (9th Cir. 2008). Nevertheless, even","paragraph_id":"para_682"},{"text":"if considered on its merits, Defendants’ theory is meritless.","paragraph_id":"para_683"},{"text":"The theory lacks support from the FINRA Code and has","paragraph_id":"para_684"},{"text":"never been considered or endorsed by any federal court of","paragraph_id":"para_685"},{"text":"appeal. Further, the theory is not logical: If true, it would","paragraph_id":"para_686"},{"text":"lead to the odd result that any investor who purchases stock","paragraph_id":"para_687"},{"text":"in a company becomes the “customer” of those individuals","paragraph_id":"para_688"},{"text":"in control of the company—and, by extension, the customer","paragraph_id":"para_689"},{"text":"of any FINRA members employing those individuals.","paragraph_id":"para_690"},{"text":"Because the FINRA Code clearly does not contemplate that","paragraph_id":"para_691"},{"text":"broad result, see, e.g., King, 386 F.3d at 1370, Defendants’","paragraph_id":"para_692"},{"text":"“alter ego” theory is unsupported.","paragraph_id":"para_693"},{"text":"For the foregoing reasons, because Defendants did not","paragraph_id":"para_694"},{"text":"transact with Woods, they are not the customers of any","paragraph_id":"para_695"},{"text":"“associated person” of Oppenheimer. As a result,","paragraph_id":"para_696"},{"text":"Defendants are not entitled to arbitration pursuant to FINRA","paragraph_id":"para_697"},{"text":"Rule 12200.","paragraph_id":"para_698"},{"text":"II. The District Court Did Not Abuse Its Discretion by","paragraph_id":"para_699"},{"text":"Entering a Permanent Injunction.","paragraph_id":"para_700"},{"text":"Defendants next suggest that, these conclusions aside,","paragraph_id":"para_701"},{"text":"the district court still abused its discretion by entering a","paragraph_id":"para_702"},{"text":"permanent injunction enjoining them from arbitrating their","paragraph_id":"para_703"},{"text":"claims. Defendants’ argument relies on eBay, which held","paragraph_id":"para_704"},{"text":"that a plaintiff who seeks a permanent injunction must","paragraph_id":"para_705"},{"text":"“demonstrate: (1) that it has suffered an irreparable injury;","paragraph_id":"para_706"},{"text":"(2) that remedies available at law, such as monetary","paragraph_id":"para_707"},{"text":"damages, are inadequate to compensate for that injury;","paragraph_id":"para_708"},{"text":"(3) that, considering the balance of hardships between the","paragraph_id":"para_709"},{"text":"OPPENHEIMER & CO. INC. V. MITCHELL 23","paragraph_id":"para_710"},{"text":"plaintiff and defendant, a remedy in equity is warranted; and","paragraph_id":"para_711"},{"text":"(4) that the public interest would not be disserved by a","paragraph_id":"para_712"},{"text":"permanent injunction.” 547 U.S. at 391.","paragraph_id":"para_713"},{"text":"Defendants argue that two of the eBay requirements are","paragraph_id":"para_714"},{"text":"not satisfied here, but both arguments are unpersuasive","paragraph_id":"para_715"},{"text":"because they rely on Defendants’ underlying contention that","paragraph_id":"para_716"},{"text":"they are “customers” of Oppenheimer. Defendants first","paragraph_id":"para_717"},{"text":"argue that Oppenheimer would not be harmed by arbitrating","paragraph_id":"para_718"},{"text":"their claims because Oppenheimer, in seeking FINRA","paragraph_id":"para_719"},{"text":"membership, agreed to arbitrate the claims of its customers","paragraph_id":"para_720"},{"text":"pursuant to FINRA Rule 12200. But for the reasons that","paragraph_id":"para_721"},{"text":"have been discussed, Defendants are not customers of","paragraph_id":"para_722"},{"text":"Oppenheimer. Therefore, Oppenheimer has no obligation to","paragraph_id":"para_723"},{"text":"arbitrate Defendants’ claims. See FINRA Rule 12200.","paragraph_id":"para_724"},{"text":"Under these circumstances, the district court did not abuse","paragraph_id":"para_725"},{"text":"its discretion by concluding that forcing Oppenheimer to","paragraph_id":"para_726"},{"text":"submit to arbitration would cause it to suffer irreparable","paragraph_id":"para_727"},{"text":"losses in the form of time, money, and related resources. See","paragraph_id":"para_728"},{"text":"McLaughlin Gormley King Co. v. Terminix Int’l Co., 105","paragraph_id":"para_729"},{"text":"F.3d 1192, 1194 (8th Cir. 1997); Md. Cas. Co. v. Realty","paragraph_id":"para_730"},{"text":"Advisory Bd. on Lab. Rels., 107 F.3d 979, 984–85 (2d Cir.","paragraph_id":"para_731"},{"text":"1997).","paragraph_id":"para_732"},{"text":"Defendants also argue that a permanent injunction is","paragraph_id":"para_733"},{"text":"unsupported because the FAA “embodies a clear federal","paragraph_id":"para_734"},{"text":"policy,” Simula, Inc. v. Autoliv, Inc., 175 F.3d 716, 719 (9th","paragraph_id":"para_735"},{"text":"Cir. 1999), in favor of arbitrating “valid, irrevocable, and","paragraph_id":"para_736"},{"text":"enforceable” agreements to arbitrate, 9 U.S.C. § 2. But this","paragraph_id":"para_737"},{"text":"argument also depends on Defendants’ “customer” status","paragraph_id":"para_738"},{"text":"because a valid “agreement to arbitrate exists only if a","paragraph_id":"para_739"},{"text":"customer requests arbitration from a [FINRA] member.”","paragraph_id":"para_740"},{"text":"UBS Fin. Servs., Inc. v. Carilion Clinic, 706 F.3d 319, 324","paragraph_id":"para_741"},{"text":"n.2 (4th Cir. 2013). Because Defendants are not customers","paragraph_id":"para_742"},{"text":"of Oppenheimer, there is no arbitration agreement between","paragraph_id":"para_743"},{"text":"24 OPPENHEIMER & CO. INC. V. MITCHELL","paragraph_id":"para_744"},{"text":"the parties, and Defendants’ suggested rationale does not","paragraph_id":"para_745"},{"text":"apply. See id. In its absence, the district court did not abuse","paragraph_id":"para_746"},{"text":"its discretion by determining that policy disfavors forcing a","paragraph_id":"para_747"},{"text":"party to arbitrate against its own wishes. Id.; see also AT&T","paragraph_id":"para_748"},{"text":"Techs., Inc., 475 U.S. at 648–49.","paragraph_id":"para_749"},{"text":"III. The District Court Did Not Err by Introducing","paragraph_id":"para_750"},{"text":"New Legal Requirements or Reaching Erroneous","paragraph_id":"para_751"},{"text":"Factual Findings.","paragraph_id":"para_752"},{"text":"Defendants finally suggest that, concerns about their","paragraph_id":"para_753"},{"text":"own “customer” status aside, the district court further erred","paragraph_id":"para_754"},{"text":"by introducing unsupported requirements for the legal","paragraph_id":"para_755"},{"text":"definition of a “customer” and making factual findings that","paragraph_id":"para_756"},{"text":"are unsupported by the record. Both of these arguments are","paragraph_id":"para_757"},{"text":"without merit.","paragraph_id":"para_758"},{"text":"Defendants first contend that the district court committed","paragraph_id":"para_759"},{"text":"legal error by “improperly impos[ing] additional","paragraph_id":"para_760"},{"text":"requirements beyond the definition [of ‘customer’] carefully","paragraph_id":"para_761"},{"text":"crafted by the [Reno] Panel.” Defendants identify only one","paragraph_id":"para_762"},{"text":"such requirement: the district court’s alleged insistence that","paragraph_id":"para_763"},{"text":"Defendants “deal[] in person with John Woods” in order to","paragraph_id":"para_764"},{"text":"qualify as his customers. This argument is unsupported","paragraph_id":"para_765"},{"text":"because the district court imposed no requirement that","paragraph_id":"para_766"},{"text":"Defendants engage in in-person interactions with Woods.","paragraph_id":"para_767"},{"text":"Nevertheless, the district court did consider whether","paragraph_id":"para_768"},{"text":"Defendants engaged in personal interactions with Woods","paragraph_id":"para_769"},{"text":"that could be seen as consistent with a purchase-based","paragraph_id":"para_770"},{"text":"customer relationship. This consideration was appropriate","paragraph_id":"para_771"},{"text":"because the “relevant inquiry” for purposes of Rule 12200","paragraph_id":"para_772"},{"text":"is, as noted, whether an individual practically transacted with","paragraph_id":"para_773"},{"text":"a FINRA member or its associated person. Abbar, 761 F.3d","paragraph_id":"para_774"},{"text":"at 276; see also Reno, 747 F.3d at 741; King, 386 F.3d at","paragraph_id":"para_775"},{"text":"1370.","paragraph_id":"para_776"},{"text":"OPPENHEIMER & CO. INC. V. MITCHELL 25","paragraph_id":"para_777"},{"text":"Defendants also contend that the district court committed","paragraph_id":"para_778"},{"text":"legal error by making erroneous “factual findings” regarding","paragraph_id":"para_779"},{"text":"their interactions with Woods. Defendants specifically","paragraph_id":"para_780"},{"text":"argue that the district court erred by finding that","paragraph_id":"para_781"},{"text":"(1) “Defendants identif[ied] no evidence that they purchased","paragraph_id":"para_782"},{"text":"any commodity or service from Woods” and that (2) Woods","paragraph_id":"para_783"},{"text":"“ha[d] not been shown to have any active role in the actual","paragraph_id":"para_784"},{"text":"purchases.” As a threshold matter, it is not clear that these","paragraph_id":"para_785"},{"text":"statements are findings of fact, as opposed to summaries of","paragraph_id":"para_786"},{"text":"the record. Nevertheless, Defendants are correct that in","paragraph_id":"para_787"},{"text":"granting summary judgment, a district court may make","paragraph_id":"para_788"},{"text":"findings of fact for the “limited purpose [of] . . .","paragraph_id":"para_789"},{"text":"pinpoint[ing] the undisputed facts supporting the summary","paragraph_id":"para_790"},{"text":"judgment.” Swarner v. United States, 937 F.2d 1478, 1481","paragraph_id":"para_791"},{"text":"(9th Cir. 1991). This process underpins the “threshold","paragraph_id":"para_792"},{"text":"inquiry of determining whether there is the need for a trial—","paragraph_id":"para_793"},{"text":"whether, in other words, there are any genuine factual issues","paragraph_id":"para_794"},{"text":"that properly can be resolved only by a finder of fact.”","paragraph_id":"para_795"},{"text":"Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 250 (1986).","paragraph_id":"para_796"},{"text":"The district court properly conducted that inquiry here by","paragraph_id":"para_797"},{"text":"assessing the undisputed evidence and concluding that it","paragraph_id":"para_798"},{"text":"reflected no signs of a customer relationship with Woods.","paragraph_id":"para_799"},{"text":"CONCLUSION","paragraph_id":"para_800"},{"text":"For the foregoing reasons, we conclude that a","paragraph_id":"para_801"},{"text":"“customer,” for purposes of FINRA Rule 12200, includes","paragraph_id":"para_802"},{"text":"any non-broker and non-dealer who purchases commodities","paragraph_id":"para_803"},{"text":"or services from a FINRA member or its associated person.","paragraph_id":"para_804"},{"text":"Nevertheless, we find that Defendants are not customers of","paragraph_id":"para_805"},{"text":"Oppenheimer, a FINRA member, because they did not","paragraph_id":"para_806"},{"text":"purchase commodities or services from John Woods or any","paragraph_id":"para_807"},{"text":"other associated person of Oppenheimer. Therefore, we","paragraph_id":"para_808"},{"text":"agree with the district court that Defendants were not entitled","paragraph_id":"para_809"},{"text":"to arbitrate their claims against Oppenheimer pursuant to","paragraph_id":"para_810"},{"text":"26 OPPENHEIMER & CO. INC. V. MITCHELL","paragraph_id":"para_811"},{"text":"FINRA Rule 12200. We also affirm the district court’s","paragraph_id":"para_812"},{"text":"permanent injunction prohibiting Defendants from","paragraph_id":"para_813"},{"text":"arbitrating their claims. 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