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Lax & Neville LLP Wins over $1.2 Million and Expungement of Broker Record in Wrongful Termination Suit

On November 21, 2018, Lax & Neville LLP won a FINRA arbitration award on behalf of a financial advisor (the “Claimant”) against First Republic Securities. A three-person Arbitration Panel rendered the arbitration award valued at $1,202,643.85.

The Panel further ruled that the Claimant's U5 language regarding termination be changed to “[Claimant’s] termination was unwarranted.”

The Claimant asserted violation of New York Labor Law; breach of contract; breach of the implied covenant of good faith and fair dealing; abuse of the Form U5, slander and libel; and tortuous interference with business relationships

First Republic requested that the Panel deny Claimant’s claims for expungement and monetary damages in their entirety and dismiss Claimant’s Statement of Claim with prejudice. In the Counterclaim, First Republic requested that the Panel award First Republic the sum of $142,788.46, plus interest at the statutory rate of 9% per year; all costs it incurred to enforce Claimant’s obligations under the Promissory Note, including an award of reasonable attorneys’ fees; and such other and further relief as the Panel deems just and proper.

The Panel granted the Claimant $727,000.00 in lost future wages, $49,194.00 in compensatory damages for monies frozen and held at First Republic, $26,943.89 in costs, and $256,717.50 in attorney’s fees. The Panel additionally rejected First Republic’s counterclaims for Claimant's promissory note, ruling that First Republic must forgive the $142,788.46 promissory note.

To discuss this FINRA Arbitration Award, please contact Brian J. Neville, Barry R. Lax or Sandra P. Lahens at (212) 696-1999.

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