Contrary to popular belief, lawsuits are not necessarily effective ways for employers to "send a message." In theory, taking the hard line with settlements and regularly forcing disputes into court or arbitration is supposed to foster the quick resolution of cases for top dollar as former employees quake in their boots with fear. Indeed, that theory is reinforced by every victory.
However, proponents of this take-no-prisoners approach really can't afford so much as one loss out of a hundred. It's that one loss that becomes legendary and is circulated around the industry. It's that one case that gets written up in the "Street Legal" column of Registered Rep. and takes on an afterlife for years to come as an e-mail attached file, as a photocopy in a file drawer, as a linked result to an online search. Without question, this case sets back Wells Fargo/Wachovia far beyond the mere $2,000 net loss.
READ BILL SINGER'S ANALYSIS OF THIS CASE AT
Don't Forget to Visit:
Wall Street's Leading Online Community:
The Comprehensive Online Wall Street Regulatory and Legal Website:
Another day and another dispute on Wall Street between a former employer and a former employee. As TD Ameritrade saw it, scorched earth was the way to... Read On
Indeed, the dead tend to keep secrets. Among the more disquieting silences are those involving brokerage accounts that were supposed to have Transfer ... Read On
In poker and arbitration there is the game within the game. There's the bluff. There's misdirection. There's tactical betting. There's strategic betti... Read On
FINRA censured and fined Equitable Advisors, LLC after the firm had settled a customer arbitration via an agreement in which the customer ag... Read On
CFTC Awards Largest Single Whistleblower Award of $200 Million But With One Commissioner's Dissent (BrokeAndBroker.com Blog)http://www.brokeandbroker.... Read On
The other day, we were informed of yet another "largest award" in the history of whistleblowing: CFTC Awards Nearly $200 Million to a Whistleblow... Read On
Securities Industry Commentator: A legal, regulatory, and compliance feed curated by veteran Wall Street lawyer Bill Singer http://www.rrbdlaw.com/611... Read On