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
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