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Securities Industry Employment Disputes

Are You a Brokerage Firm or Representative Facing a Securities Industry Employment Dispute?

Our Securities Industry Litigation Attorneys Help Broker-Dealers, Firms, and Industry Professionals Optimize the Outcome of Employment Disputes

Securities Industry Employment DisputesMillions of dollars are often at stake in employment disputes between brokerage firms, registered representatives and other securities professionals. Frequent layoffs, firm transfers and restructuring can bring a wide range of Wall Street employment-related disputes to the surface.

These disputes can arise from a number of issues, including compensation disagreements, bonus loan balances, client complaints, and wrongful termination. Faulty resolutions of these issues can lead to lengthy, public litigation and adversely affect compensation, professional reputations, and future industry opportunities.

Our Herskovits PLLC securities industry employment litigation attorneys aggressively represent the nation’s leading brokerage firms, registered representatives, analysts, brokers and other securities professionals who are facing wrongful termination claims, compensation disputes or Form U5 issues.

U.S. securities litigation attorney Robert Herskovits and the Herskovits securities litigation team are strong advocates for brokers, investment firms and financial advisors faced with securities industry employment issues.

We defend your reputation and work to help resolve employment issues without litigation. However, if your case does go to arbitration or court, we work aggressively and strategically to achieve the optimal outcome.

If you are a brokerage firm, registered representative or advisor facing an employment-related regulatory inquiry, investigation or proceeding, don’t hesitate to contact Robert Herskovits or a Herskovits team member for a confidential, no-cost case evaluation: (212) 897-5410 or Contact Online.

Most Securities Industry Employment Disputes are About These Issues

Our New York securities industry employment negotiation, arbitration, and litigation attorneys both incept and defend claims for:

  • Broker-dealer raiding
  • Employee forgivable loans (EFLs)
  • Form U4 disclosure and U5 termination expungements
  • Restrictive covenants
  • Wrongful termination
  • Unpaid bonus claims
  • Unpaid deferred compensation (including Restricted Stock Units)
Broker-Dealer Raiding Claims

Competing firms may bring raiding claims around producer hiring. Litigation often ensues if one broker-dealer acts in a predatory fashion and causes producers to leave another broker-dealer en-masse. Firms can bring raiding claims to prevent employee poaching in violation of non-compete covenants and other regulations.

Our Herskovits PLLC securities industry employment dispute attorneys litigate both sides of raiding claims. In a recent arbitration, we successfully advanced a “lifeboat” defense by demonstrating that the producers were intent on leaving and the hiring firm acted without malice. Learn your rights and options now. Contact us for a confidential, no-obligation consultation: (212) 897-5410 or Contact Online.

Employee Forgivable Loans (EFLs)

EFLs, promissory notes, recruiting bonuses or up-front bonuses are offered as recruiting incentives to potential high level hires. Employment agreement EFL provisions often state that if the broker chooses to leave or is terminated within a certain period, the outstanding loan balance is immediately payable to the firm. If the employee does not repay the loan, the firm may bring a claim for the amount due.

Robert Herskovits and the Herskovits PLLC team has successfully prosecuted a significant number of EFL cases brought on behalf of large broker-dealers, such as Morgan Stanley Smith Barney LLC and Jefferies & Company, Inc.

We have also defended a multitude of EFL cases brought by various broker-dealers, structuring a defense designed to achieve a resolution with a significant discount to the note’s unpaid balance: (212) 897-5410 or Contact Online.

Form U4 Disclosures and U5 Termination Defamation, Expungement & Other Issues

Member firms must submit a Form U4 to FINRA after hiring an employee and a Form U5 within 30 days of employee termination. Form U4 must list an employee’s prior disputes, lawsuits, judgments and other information relevant to licensing. Form U5 must list the reason for termination and whether the departure was voluntary a permitted resignation or termination.

When information is included on Form U4 or Form U5 that leads to FINRA investigation or harms the broker’s ability to find new employment, a defamation claim may be brought against the firm in some states (not New York). As an alternative, employees may also bring claims for Form U4 and Form U5 expungement which is a complex procedure but in certain circumstances that wise career choice.

If you are a securities professional seeking to expunge information contained in From U4 or Form U5, our Herskovits PLLC securities employment litigation attorneys represent financial advisors in FINRA investigations stemming from Form U4/U5 disclosure or termination and employees seeking removal or modification of a Form U4/U5 disclosure or termination: (212) 897-5410 or Contact Online.

Restrictive Covenants

Restrictive covenants are included in employment agreements to prevent new brokers from working with former clients for a certain period and/or to prevent brokers from distributing confidential information.

Brokers may bring a restrictive covenant claim against a firm if they feel the agreement is unreasonable – meaning the agreement is more than what is required for the legitimate interest of the firm, imposes an undue hardship on the broker, or is injurious to the public.

If you are a securities industry employee who feels a restrictive covenant is unreasonable, a brokerage firm seeking to enforce a restrictive covenant, or a brokerage firm facing an employee claim regarding your restrictive covenant, our experienced Herskovits PLLC securities employment litigation attorneys can explain your options in a confidential, no-obligation consultation: (212) 897-5410 or Contact Online.

Wrongful Termination Claims

In the securities industry, a brokerage firm may not terminate an employee for any reason prohibited by the employment agreement, law or public policy. Brokers terminated for reporting an SEC violation or other illegal act have a cause of action under the Sarbanes-Oxley Act. Brokers terminated for improper or unlawful conduct may have a claim against a firm if he/she can disprove the allegations.

If you are a broker who feels you may have a claim for wrongful termination, Robert Herskovits and the securities employment litigation attorneys at Herskovits PLLC can work to resolve matters with the firm on your behalf, through either negotiation or litigation.

Financial entities facing a broker claiming wrongful termination are also a focus area for Herskovits PLLC and we have a solid track record of helping financial firms in challenging and difficult cases.

Unpaid Bonuses and Deferred Compensation Claims

The law offices of Herskovits PLLC have extensive experience defending brokerage firms, analysts, traders, investment bankers and other securities industry professionals seeking to resolve unpaid bonus and deferred compensation (including restricted stock units) disputes. If you are facing a dispute regarding employment compensation, contact us at your earliest convenience as there are strict time limits for such claims.

Leading U.S. securities employment litigation attorneys with Herskovits PLLC have extensive experience representing both securities industry employees and brokerage firms in employment-related disputes.

If you are a securities industry professional or brokerage firm facing an employment dispute, Robert Herskovits and the Herskovits PLLC team will defend your case and maximize your claim: (212) 897-5410 or Report Online.

Client Reviews
I give Rob Herskovits and his law firm my strongest possible recommendation. He expertly guided me through a challenging and highly adversarial FINRA disciplinary hearing. Due largely to Rob's extraordinary efforts, each of FINRA's charges were ultimately dismissed by the hearing panel. It is unusual to beat FINRA on their home court, and I'm grateful to have had Rob by my side. Matt D.
Rob has handled customer matters (mediations and arbitrations) as well as regulatory matters for my firm. He is very knowledgeable about the process, and can explain the details in layman's terms. Rob presented our case very well and achieved successful results in every engagement. Jay
I give Robert my highest recommendation. He and his firm helped me through what could have been an extended and financially troubling time. I am not sure that I could have cleared up a false accusation by a previous client had it not been for Robert and his firm, and for that I am very grateful. Derrick
Rob was great he helped my partner and I last year get two cases removed from our record that had no merit. You know how the firms are they represent themselves and settle we suffer. Rob represents you and he’s great!! Jeremy