According to reports, a former Morgan Stanley broker was ordered to repay almost $1 million in a promissory note case but managed to prevail on a counterclaim and was awarded $100,000 in damages.
The report indicates that the counterclaim was largely based on allegations that Morgan Stanley promised to keep an office in Sun Valley, Idaho when they recruited the broker to the firm.
The award represents a rare victory for brokers as statistics indicate that financial advisors lose note cases approximately 90% of the time, according to an analysis by Securities Arbitration Commentator Inc., an award research service.
Promissory note cases are a common form of FINRA litigation, arising when a broker leaves a firm before the full amount of a forgivable loan agreement has been forgiven.
The White Law Group routinely represents advisors in promissory note claims involving their former employer, helping these advisors to either negotiate an agreeable settlement or litigate counterclaims based on the brokerage firms failure to deliver on recruiting promises.
For more information on FINRA promissory note claims and The White Law Group’s representation of brokers in these cases, visit http://www.whitesecuritieslaw.com/2010/06/23/financial-advisor-promissory-note-litigation-representation/.
The White Law Group is a national securities arbitration law firm with offices in Chicago, Illinois and Vero Beach, Florida. For a free consultation with a securities attorney, please call the firm’s Chicago office at 312/238-9650.
For more information on The White Law Group, visit http://www.whitesecuritieslaw.com.