After many years in the industry I received my first written client complaint.  To make a long story short, the client thought they lost money in a bond fund because a capital loss showed up on their 1099 when they sold the fund.  In reality, the bond fund paid much more interest / dividends than the capital loss and they actually made several thousand dollars.  My BD denied the claim but because the initial amount was over $5000 it is disclosed on my U4. 

In this case, the complaint is clearly not factual and is simply erroneous. 

Is it possible to get this expunged from U4 / Brokercheck?  Everything I have ready online is telling me there has to be a hearing and an order to get it removed.  I'm not above taking this person to arbitration or court.  Has anyone ever sought damages from a complainant.  I am willing to fight for my reputation.  Any advice would be greatly appreciated.