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Credit Suisse attempts to overturn arbitration ruling in favor of ex-broker

On Behalf of | Mar 9, 2023 | Financial News

Credit Suisse Group AG is going to court to fight a recent arbitration ruling that went in favor of one of its former brokers, reports AdvisorHub.

Last month, a panel of Financial Industry Regulatory Authority arbitrators awarded $1.3 million to James D. Garrity, who worked for Credit Suisse for 15 years and later filed a claim against the firm in a dispute over deferred compensation.

When Credit Suisse closed its U.S. wealth management business in 2015, Garrity was among nearly 300 brokers who alleged that the firm told them they had to voluntary resign as a way to avoid them paying them deferred compensation.

His arbitration claim cited breach of contract and unjust enrichment, and FINRA awarded him over $1 million in compensatory damages and $363,000 in prejudgment interest.

Last week Credit Suisse filed a petition in New York federal court asking that the award by the arbitrators be overturned. The firm claims Garrity is not entitled to deferred compensation because he resigned voluntarily. In the arbitration ruling, Garrity lost his attempt request to amend or remove the reason he departed Credit Suisse on his Form U5, which will continue to state the departure was voluntary.

Those who choose to work in the financial services industry face a range of complex rules and regulations. If you are under investigation by your firm, terminated for cause or considering voluntarily leaving your firm, it is imperative that you hire counsel to advise you properly and protect your record. The attorneys at Lewitas Hyman have years of experience advising both financial advisors and financial firms on various types of employment issues, including deferred compensation. For more information about our financial services employment practice, please contact Lewitas Hyman at (888) 655-6002 or through our online contact form.