December 2021

Financial Services Firm Achieves Significant Arbitration Victory

A growing financial services firm and leading Minority Owned Business Enterprise and its CEO achieved a significant victory after a former employee filed a FINRA arbitration seeking $1.6 million in damages against the firm under claims for fraudulent inducement of employment, negligence and misrepresentation, and breach of contract. Faegre Drinker represented the financial services firm in the case.

The claimant joined the financial services firm as an institutional sales trader after a lengthy recruitment process, through which he touted his 20 years of experience as a sales trader, and critically, a large book of business that could contribute to the firm's growth. When he eventually joined the firm, however, he generated no revenue for the firm, his book of business never materialized, and he started making significant trading errors exposing the firm to substantial liability. After the firm provided him multiple opportunities to succeed, he was ultimately terminated.

The Faegre Drinker team spent six days and nights in a conference room for the virtual FINRA arbitration. As with any case, the team had to contextualize evidence and documents that, on the surface, were not entirely favorable to our case. With preparation, our clients presented honest and persuasive evidence and testimony to ensure the true rendition of events were presented to the panel of arbitrators, who kept us guessing and on our toes at every turn. After 12 hearing sessions, the panel of arbitrators denied all claims in their entirety.

Results may vary depending on your particular facts and legal circumstances.

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