Posts tagged ‘Merrill Lynch deferred compensation investigation’
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.
A three-person Financial Industry Regulatory Authority Inc. panel recently awarded two former Merrill Lynch financial advisors over $10 million ($5 million in compensatory damages and $5 million in punitive damages) over deferred compensation benefits allegedly owed to the advisors.
Of course, Merrill Lynch immediately filed a petition with a federal court in Florida seeking to overturn the decision, but the decision nonetheless validates the strength of these deferred compensation claims against Merrill Lynch.
The arbitration panel, in a sharply worded decision, said a Merrill Lynch committee that determines whether to vest departing brokers in their deferred pay was nothing “but a sham committee that did nothing more than rubber-stamp denials.”
The award further stated that the committee had never approved a request for vesting, despite Merrill’s own analysis that it might have to pay “anywhere from hundreds of millions to several billion dollars in potential liability.”
Hundreds of former Merrill Lynch advisors have been reviewing litigation options regarding their deferred compensation benefits. This award is a landmark victory for these advisors and serves as evidence that arbitration panels may side with the advisors on these cases.
If you are a former Merrill Lynch financial advisor that has not already filed a claim for your deferred compensation benefits, please contact the securities attorneys of The White Law Group at 312/238-9650 for a free consultation.
The White Law Group, LLC is a national securities arbitration, regulation and compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.
For more information on The White Law Group, visit http://www.whitesecuritieslaw.com.