In a Financial Industry Regulatory Authority ("FINRA") Arbitration Statement of Claim filed in March 2012, Claimant Charles Schwab sought damages, attorneys' fees, costs, and the disgorgement of salary and benefits as a result of, among other causes of action cited, breaches of fiduciary duty and contract, tortious interference with contract and prospective economic advantage, and unfair competition in connection with Respondent Chen's former employment. Further, Claimant Schwab sought an injunction from the use or disclosure of confidential information to "identify existing customers or to facilitate the solicitation of such customers or to otherwise unfairly compete with Claimant."In the Matter of the FINRA Arbitration Between Charles Schwab & Co., Inc, Claimant. v. Suzanne C. Chen and Golden State Advisors, LLC,Respondents (FINRA Arbitration 12-00954, March 21, 2013).
Respondent asserted that Respondent Chen acted in a manner consistent with her duty of loyalty and with applicable FINRA rules, and that Chen did not improperly disclose any of Claimant's proprietary information; and Respondent Golden State Advisors acted in a proper manner.
The FINRA Arbitraion Panel found:
Respondent Chen liable and ordered her to pay to Claimant Charles Schwab:
Respondent Golden State Advisors liable and ordered it to pay to Claimant Charles Schwab:
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