Facts

Claimant, Lyle LaMothe sued Respondent, Merrill Lynch alleging that Respondent violated the Racketeer Influenced and Corrupt Organizations Act (RICO) and committed fraud, unsuitability, lack of supervision and breach of contract when Respondent sold securities in relation to the subprime mortgage and financial crises.

CLAIMANT'S CONTENTIONS: Claimant contended that defendant committed fraud and breached its fiduciary duty in violation RICO and other FINRA rules. Claimant filed a cause of action related to securities, which included stock options claimant earned through employment with Respondent. Claimant further contended that the six-year period should be tolled.

RESPONDENT'S CONTENTIONS: Respondent moved to dismiss, contending that the claims were outside the six-year limitation pursuant to FINRA rule 12206(a) because the events involved occurred in January 2009.

Damages

Claimant requested unspecified compensatory damages, punitive damages, disgorgement of respondent's gains, prejudgment interest and other relief the panel deems proper. Respondents requested dismissal of the claim.

Result

The panel granted respondent's motion to dismiss because the substantive events occurred in 2009 and were outside the six-year limitation period and not subject to tolling.

Other Information

ARBITRATORS: Mary Lou McGanney, presiding chairperson; Terrance J. Nolan; Michael J. Fleming.