Facts

Claimant was a financial advisor employed by respondent until his discharge in 2014. In 2015, claimant filed a statement of claim against respondent in FINRA's arbitration forum, alleging that his employment had been wrongfully terminated.

CLAIMANT'S CONTENTIONS: Claimant alleged that his termination constituted retaliation for purported protected whistleblowing in violation of California's public policy. Claimant's statement of claim asserted ten causes of action, including breach of contract, breach of fiduciary duty, breach of the covenant of good faith and fair dealing, fraud, wrongful termination in violation of public policy, defamation and trade libel, failure to supervise, intentional interference with business relationships, negligent interference with business relationships, and violations of California's Business & Professions Code section 17000, et seq.

RESPONDENT'S CONTENTIONS: Respondent asserted that claimant, an at-will employee, was lawfully discharged for violating firm policy and for initially providing inaccurate information to respondent's compliance department regarding those violations.

Damages

Claimant's statement of claim sought damages in the amount of $5 million, punitive damages in the amount of $10 million, attorney fees and costs, prejudgment interest, civil penalties, and restitution. Claimant also sought expungement of the explanation of his termination on his FINRA Form U5. At the close of the arbitration hearing, claimant requested damages that exceeded $4.1 million.

Result

The arbitrators denied claimant's claims in their entirety. The arbitrators specifically noted that they had considered claimant's claim of retaliation in violation of a statute and found it to be without merit.

Other Information

ARBITRATORS: Lester Friedman, John B. McArthur, and Robert S. Mandelson