If the ponzi scheme victims had an account at a brokerage firm like Merrill Lynch, Morgan Stanley, Linsco LPL, ING, UBS, Stifel Nicolaus, William Blair or Robert Baird the case will be decided in FINRA arbitration.  Many clients at firms like these don’t recall but at the time the brokerage account was opened, the client contractually agreed to have any disputes heard through binding arbitration at FINRA (formerly known as the NASD).  If a client files a lawsuit in count, the judge will almost certainly compel the case to arbitration instead because of the binding arbitration clause in the new account agreement signed by the client.  In cases where the ponzi scheme victim did not have an account at a brokerage firm, then a lawsuit can be filed in court.  In most instances, a class action lawsuit is not allowed in ponzi scheme case because often the victims have differing facts that mean commonality, one of the requirements for a class action lawsuit, is not present.