A panel of Financial Industry Regulatory Authority arbitrators Issued their award in an age discrimination claim against RBC Capital Markets, reports Wealth Management.
Minnesota-based advisor Cinda Collins alleged that the firm discriminated against her due to her age and gender. She said the firm fired her in November 2019 after nearly 30 years because she was approaching retirement. By doing so, she claimed, RBC could steal much of her book of business without compensating her for it.”
Collins asserted the following causes of action: violation of high standards of commercial honor and just and equitable principles of trade, discrimination (in violation of Minnesota law), defamation, and unjust enrichment
The FINRA arbitrators ruled in favor of Collins and ordered RBC to pay a total of nearly $9.7 million.
In her statement of claim, Collins asked that RBC immediately file a new U5 stating that she was terminated without cause. She asked for compensatory damages equal to the damage to her reputation, injury to the value of her book of business, and/or RBC’s unjust enrichment, in excess of $7 million, as well as punitive damages and the costs of bringing the case. RBC asked FINRA to dismiss the claims.
In their decision, the three-member arbitration panel ordered RBC to pay about $6 million in compensatory damages, an additional $2 million in punitive damages and approximately $1.41 million in attorneys’ fees (in addition to several other costs). But they did not require RBC to submit a new Form U5.
An RBC spokesperson said the firm was “disappointed in and disagree with the panel’s decision.”
“At RBC, we value diversity and inclusion, we do not tolerate unlawful discrimination, and we maintain a workplace culture where all employees are respected and treated fairly,” they said.
Collins’ lawyers, Joseph W. Anthony and Cory D. Olson of Anthony Ostlund Louwagie Dressen & Boylan in Minneapolis, said that the panel’s decision vindicates her.
In a statement to AdvisorHub, they said: “This award sends an important message to RBC and similar firms that discriminatory conduct and the systematic mistreatment of women will not be tolerated by FINRA panels or the public at large,” the lawyers wrote.
Anthony called it the largest award ever granted to a financial advisor in Minnesota.
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