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Securities
Breach of Fiduciary Duty
Stocks

Larry McCumber and Joyce McCumber v. Merrill Lynch, Pierce, Fenner & Smith Inc.

Published: May 18, 2013 | Result Date: Apr. 30, 2013 | Filing Date: Jan. 1, 1900 |

Case number: 12-01460 Arbitration –  Expungement

Court

FINRA


Attorneys

Claimant

Joseph S. Fogel
(Fogel & Associates)


Respondent

Julie Portera


Facts

Larry and Joyce McCumber entered into arbitration with Merrilll Lynch and Pierce, Fenner, & Smith Inc. regarding a loan made through Merrill Lynch's Loan Management Account Program. The loan was secured with margin and other stocks in the McCumbers' account.

Contentions

CLAIMANT'S CONTENTIONS:
The McCumbers alleged negligence, fraudulent misrepresentation, breach of fiduciary duty, negligent supervision and misrepresentation, unjust enrichment, and breach of contract.

RESPONDENT'S CONTENTIONS:
Merrill Lynch and Pierce, Fenner & Smith denied the allegations, asserting various affirmative defenses.

Damages

The McCumbers sought general and special damages, as well as punitive damages, disgorgement of fees, attorney fees, and costs.

Result

The parties reached a settlement and the arbitration panel recommended expungement of all records.


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