According to reports in Reuters, Merrill Lynch has agreed to a proposed $40 million class action settlement with 1,400 brokers over deferred compensation it refused to pay them after its merger with Bank of America.
But the proposed deal may still leave roughly 2,000 brokers to battle privately against the brokerage. (About 3,300 brokers left Merrill after the BoA deal.)
The report indicates that former Merrill brokers would be excluded from the deal if their revenues topped $500,000 during a certain period prior to their departure.
Others who accepted bonuses from Merrill Lynch, following its acquisition by Bank of America Corp, would also be excluded.
The suit stems from Merrill’s September 2008 merger with Bank of America. At issue are years of deferred compensation, some of which was held in brokers’ stock savings plans.
For the Merrill Lynch advisors that elect to opt out of the settlement or for those that are excluded, there still exists the right to file a FINRA arbitration claim to attempt to recover your deferred compensation benefits.
The White Law Group continues to investigate such claims and provides a free consultation to advisors to determine their litigation options.
To speak with a securities attorney regarding your Merrill Lynch deferred compensation, please call The White Law Group at 312/238-9650.
The White Law Group is a national securities arbitration law firm with offices in Chicago, Illinois and Boca Raton, Florida.
For more information on the firm, visit http://www.whitesecuritieslaw.com.