- sexual harassment,
- retaliatory firing,
- mental anguish,
- emotional distress,
- hostile work environment,
- quid pro quo,
- negligent hiring,
- negligent retention of a supervisor,
- battery, and
- defamation.
An irreverent Wall Street Blog
by Bill Singer
by Bill Singer
FINRA Arbitrators Award Two Women Over $1 Million for Sexual Harassment
May 11, 2011
In a Financial Industry Regulatory Authority ("FINRA") Arbitration Statement of Claim filed in February 2008, Claimants Vitagliano and Thompson asserted causes of action for:
Claimants Vitagliano and Thompson each sought $5 million in compensatory damages and $10 million in punitive damages. Further, Claimants sought reinstatement to their former positions of employment with all back pay, raises, bonuses, and benefits, and further relief as the FINRA Arbitration Panel might deem just. In the Matter of the Arbitration Between Lauren Vitagliano and Jeanine Thompson Claimants vs. Empire Financial Holding Company, Empire Financial Group, Inc., Jesup & Lamont, Inc., John James Wilson, and George Tamborello, Respondents (FINRA Arbitration 08-00584, May 6, 2011).
Respondents Empire Group, Wilson, and Tamborello generally denied the allegations and asserted various affirmative defenses.
No Jurisdiction
Respondent Empire Financial Holding Company is not a FINRA member or associated person and did not voluntarily submit to arbitration. As such, the FINRA Arbitration Panel made no determination with respect to Claimants' claims against Empire Financial Holding Company.
Bankruptcies
In September 2010, Respondents Jesup & Lamont, Inc. and Empire Financial Group, Inc. filed for bankruptcy and, accordingly, the claims against Respondent Jesup & Lamont, Inc. are indefinitely stayed. The FINRA Arbitration Panel made no determination with respect to the claims against these two Respondents.
Disappearing Act
Respondent Tamborello did not appear at the February 24 and 25, and March 30,2011 hearings; and notified the panel by email that he would not attend the final hearing.
The Panel Rules
The FINRA Arbitration Panel found Respondent Tamborello had sexually harassed Claimant Vitagliano and Claimant Thompson in violation of Title VII of the Civil Rights Act of 1964, found him liable, and ordered him to pay to
Claimant Vitagliano:
- $600,000.00 plus interest at the rate of 4% per annum from the date of the Award until it is paid in full as compensatory damages.
Claimant Thompson:
- $500,000.00 plus interest at the rate of 4% per annum from the date of the Award until it is paid in full as compensatory damages.
The majority of the FINRA Arbitration Panel found that Claimants had not sustained their burden of proving that John Wilson had sexually harassed them. Claimants' claims against Wilson were denied in their entirety.