Herskovits PLLC Proves Form U5 Defamation and is Awarded Attorneys’ Fees for Our Client


On November 19, 2020, FINRA published a noteworthy arbitration award for a Herskovits PLLC client in FINRA Arbitration No. 20-01054.  This case has garnered significant attention in the press due to the fact that Wells Fargo was ordered to pay our client’s attorneys’ fees.  Stories about the case have been reported in AdvisorHub, InvestmentNews and ThinkAdvisor.

On February 18, 2020, Wells Fargo terminated the FA and inserted the following allegation on the Form U5:

“WF Bank, N.A., registered banker was discharged by the bank after a bank investigation reviewed complaints received by AMIG from two bank customers alleging the customers were enrolled in renter’s insurance policies for which the banker received referral sales credit without the customers’ authorization.  The registered banker denied the customers’ allegations.  The activity was not related to the securities business of WFCS.”

The arbitrator deemed Wells Fargo’s disclosure to be defamatory in nature and ordered that (a) the reason for termination be changed from “discharged” to “other”; and (b) the termination explanation be changed to “Not for cause termination.”  In addition, Wells Fargo was ordered to pay attorneys’ fees in the amount of $30,000.

Herskovits PLLC has a nationwide practice representing individuals and entities in FINRA investigations and FINRA arbitrations.  Additionally, we routinely represent financial professionals in compensation and termination-related disputes, including Form U4/Form U5 expungement claims.  We can contacted at 212-897-5410.

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