Wells Fargo Advisors LLC v. Robert M. Brown, Michael E. Hornkohl, Wedbush Securities Inc.
Published: Nov. 28, 2015 | Result Date: Oct. 14, 2015 | Filing Date: Jan. 1, 1900 |Case number: 10-00540 Arbitration – $60,000
Facts
Wells Fargo Advisors LLC filed a complaint against former employees Robert Brown and Michael Hornkohl and their current employer, Wedbush Securities Inc.
Contentions
CLAIMANT'S CONTENTIONS:
Claimant alleged that respondents had taken trade secret and confidential data when they left their employment at Wells Fargo.
Claimant asserted causes of action against respondents for misappropriation of trade secrets, breach of contract, breach of duty of loyalty, tortious interference with business relationships, conversion, unfair competition, intentional interference with economic advantage and defamation. Claimant later added causes of action for violations of the Computer Fraud and Abuse Act and the California Comprehensive Computer Data Access and Fraud Act.
RESPONDENTS' CONTENTIONS:
Respondents denied the allegations and asserted various affirmative defenses. Respondents also requested the expungement of the individual respondents' CRD records.
Damages
Wells Fargo sought an injunction against respondents, compensatory damages, restitution or disgorgement of ill-gotten profits, punitive damages, attorney fees and costs, and other relief.
Result
The FINRA Panel found Brown liable to Wells Fargo for $5,000 plus interest and Hornkohl in the amount of $55,000 plus interest. The Panel denied Wells Fargo's claim against Wedbush in their entirety, but ordered Wedbush to pay for half of the arbitration costs.
Other Information
ARBITRATORS: Vincent J. Natoli, Jr.; Michael M. Hachigian; David J. Romanski. FILING DATE: Feb. 3, 2010.
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