On August 30, 2021, a three-member FINRA Panel issued an Award in favor of WSS’ client, a mid-sized independent broker-dealer, in an arbitration brought by a registered representative who alleged that the firm wrongfully failed to hire him after the firm acquired his existing broker-dealer in an asset purchase. The broker alleged that he resigned from his former firm in alleged reliance on promises of the acquiring firm to hire him, and that when he wasn’t hired, he “lost his business” when his accounts were transferred to the acquiring firm. The broker alleged that the value of the lost business was $3-5 million. After listening to testimony (which included the fact that the representative never even filled out the paperwork necessary to be considered for registration at the acquiring firm), the Panel summarily rejected the representative’s claims, awarding no damages, and awarding the majority of the forum fees to be paid by the Claimant. WSSLLP congratulates Texas Managing Partner Martin Schexnayder on this terrific result in the arbitration, which was the fourth such final hearing conducted by the Texas office this year.
Aug 31, 2021