Monday, August 14, 2017

FINRA Arbitration Awards for Broker U5 Defamation Claims

U5 Arbitration Lawyer for Brokers In Pennsylvania


If You Are the Victim of an Erroneous, Misleading or Libelous/Defamatory U5,
You Can Sue for Substantial Remedies
Securities broker-dealers who are employed by securities firms are put in a difficult position if there employer should choose to terminate the reason their employment for any reason whatsoever. That is because, if there is any sort of termination initiated by the employer securities firm, no matter how benign, a form you five must be filed with FINRA. Once a you five is filed, its existence can make it difficult for brokers to find new employment.

Philadelphia-Area Contingent Fee Securities Arbitration Attorney

Representing Pennsylvania's Workforce Since 1991
Questions?  John will spend 5-10 minutes with you discussing your current work situation, a U5 claim, your disability/FMLA leave, your employment/non-compete contract, a separation agreement, your wage or overtime claim, your unemployment appeal or your potential lawsuit at no charge to you.  Call 610-647-5027.  John is usually available 24/7.

You may also Click Here to e-mail John directly.

FINRA Requires the Filing of a Form U5 for all Involuntary Separations

The fact that an securities firm employer initiating a separation (termination or involuntary resignation) must complete a form U5 to be filed with FINRA can create somewhat of a dilemma for the employer as well. For example, any statement suggesting that the broker was terminated for any reason other than a "reduction in force" or "layoff" can cast a large shadow over the broker (indeed, any U5 can). That said, if the securities firm files an inaccurate, misleading or libelous U5, it can subject itself to litigation from future employers of the broker, future customers of the broker or the broker himself/herself.

Regulates Securities Industry Closely
No Jury Trials - Only FINRA Arbitrations - for U5 Lawsuits

If you believe you are the victim of a misleading, erroneous or defamatory U5, you cannot proceed by filing an action in court. Whether you are aware or not, you have by taking a job with an entity governed by FINRA forfeited your right to a jury trial and agreed to arbitrate any claims arising out of your employment relationship, including U5-related claims.

FINRA Arbitrations Follow a Specific Procedure
Filing Fees for U5 Arbitration Claims Can be Substantially More Expensive Than Federal Lawsuits

While the filing fee to file a lawsuit in federal court is $400, the filing fee to commence an arbitration is often in excess of the thousand dollars. On the other hand, actual litigation in the arbitration forum is usually less expensive than in the court, owing to the limited discovery and limitations on the number of depositions each party can take prior to trial arbitration.  Click to jump to FINRA's dispute resolution statistics for U5 (and other) claims.

FINRA Arbitrations Cost-Effective?
A 3-Person Arbitration Panel Decides Cases Worth More Than $100,000

Arbitration panels consisting of three or more persons with substantial industry knowledge are assigned to U5 arbitration claims involving alleged damages in excess of $100,000. There have been a number of substantial judgments in favor of broker-dealers who were subjected to what arbitration panels determined were inaccurate, misleading, erroneous and/or libelous U5s. Some of more recent awards are:

*  Broker-Dealer Awarded $417,000 Award by Arbitration Panel in U5 Libel/Defamation Case 

*  Royal Bank of Scotland Forced to Pay $2.05 Million on U5 Breach of Contract/Defamation Arbitration Claim


Click to read an excellent summary of some FINRA Arbitration Awards from prior to 2012.

Employment Questions? Call John for a Free Phone Consultation
Employment Law Firm Serving Chester, Montgomery, Delaware, Bucks, Berks, Lancaster and Philadelphia Counties

If you have employment-related questions and live in Paoli, Exton, Phoenixville, Downingtown, Coatesville, West Chester, Newtown Square, Nether Providence, Springfield, Aston, Broomall, Marple, Villanova, Lansdowne, Wayne, Ardmore, Bryn Mawr, Glenolden, Havertown, Haverford, Limerick, Oaks,  Lower Merion, Paoli, Exton, Phoenixville, Downingtown, Coatesville, West Chester, Newtown Square, Nether Providence, Springfield, Aston, Broomall, Marple, Villanova, Lansdowne, Wayne, Ardmore, Bryn Mawr, Glenolden, Havertown, Haverford, Limerick, Oaks,  Lower Merion, Malvern, Wayne, King of Prussia, Downingtown, Glenside, Doylestown, Radnor, Newtown Square, Exton, Philadelphia, West Chester, Skippack, Langhorne, Haverford, Nether Providence, Broomall, Drexel Hill, Reading or Pottstown, call John for a free telephone consultation.



Need an Experienced Contingent Fee Lawyer to Sue Your ex-Employer for Discrimination, Retaliation, Sexual Harassment, Unpaid Compensation or Hostile Work Environment?

Click Here if you have questions about any aspect of employment law, from wrongful termination, to wage and overtime claims, to discrimination and retaliation laws, to Family and Medical Leave

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