According to the Investment News, brokerage firm Edward Jones on Monday was ordered by an arbitration panel to pay a former representative $100,000 in damages.
Marc Miller, who left Jones in October 2008 for Morgan Keegan & Co. Inc. in Sarasota, Fla., claimed that Jones defamed him on his U-5 termination report and breached an agreement to clear his record.
In the suit, Mr. Miller alleged that he resigned from Edward Jones, but the firm claimed that he had been terminated for a “laundry list” of alleged problems, including unauthorized use of margin and misuse of his expense account.
As a result of the tarnished U-5, Mr. Miller apparently had to withdraw pending registrations from several states.
In addition, as it normally does with negative U-5 filings, the Financial Industry Regulatory Authority Inc. opened an investigation into Mr. Miller’s conduct.
Apparently, Edward Jones ultimately agreed to amend the U-5 and inform Finra that the firm’s own investigation found no problem with Mr. Miller but Edward Jones backtracked on that agreement.
Although Mr. Miller’s award counts as a rare win in a defamation case, it still comes up short of the damages that he had requested.
Mr. Miller had asked for $750,000 in damages, $120,000 in attorney’s fees and $3 million in punitive damages.
If you have questions about language on your U-5 or if you believe that you have a claim against your former employer, the securities attorneys of The White Law Group may be able to help. For a free consultation, call the firm’s Chicago office at 312-238-9650.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida. With over 30 years of securities law experience, including experience working at FINRA (f/k/a the NASD) and the SEC, The White Law Group has the expertise to help investors defrauded in securities, investment and financial business transactions.
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