A federal judge in Texas sided with Edward Jones after a former broker who had been discharged filed a retaliation lawsuit against the firm, reports AdvisorHub.
Emilio Lira claimed that he was wrongfully terminated in 2019 for reporting what he said were civil rights violations by the company. But Edward Jones contended it had just cause to fire Lira, saying he was discharged for not reporting a financial judgment against him in a timely fashion.
U.S. District Judge Jason Pulliam for the Western District of Texas ruled in favor of Edward Jones and dismissed the lawsuit. Pulliam said the evidence in the case supported what the company said were its non-retaliatory reasons for Lira’s termination. Pulliam said an email written by Lira included his acknowledgment of a lack of timely reporting of a judgment for costs to the Financial Industry Regulatory Authority. In his ruling, the judge cited Edward Jones’ policies requiring employees to internally report actions that trigger Form U4 updates.
Lira, who identified himself as a Hispanic/Latino advisor and had been with Edward Jones for 13 years, filed his lawsuit in January 2020. He did not respond to a request for comment by AdvisorHub following the ruling.
In a statement, an Edward Jones spokesperson said the company condemns discrimination of any kind, and said the judge’s decision recognized that “Mr. Lira’s employment was terminated for legitimate, non-retaliatory reasons.”
Any firm that terminates a registered representative is required to file a Form U5 explaining the reason behind the termination. When the termination is improper, the Form U5 is usually false and defamatory. Lewitas Hyman routinely represents financial advisors and other registered representatives who were wrongfully terminated by their firm. Contact our financial advisor wrongful termination lawyers at (312) 291-4600 or through our online contact form for a free consultation.