Former clients of LPL Financial are fighting the firm and their broker, Jason N. Anderson in Beaumont, Texas.
Plaintiffs Elijah Denson and Olan Weeks of Beaumont, Texas, seek more than $1 million in damages on behalf of “hundreds” of current and former clients of Jason N. Anderson, at LPL Financial in a class-action lawsuit alleging churning and inflated mutual fund charges, according to the lawsuit.
Anderson was registered with the LPL Financial from 2007 until the company fired him in January 2016, according to Anderson’s FINRA BrokerCheck report.
According to reports, LPL Financial challenged the lawsuit last November, saying that the customers under terms of their account agreements are subject to mandatory arbitration rather than courthouse litigation. The case last week was transferred to federal court in the eastern district of Texas.
A class-action complaint is “superior to all other available methods” because it avoids a large number of individual complaints and allows those with small losses to recover damages without having to pay for litigation costs, lead plaintiffs Elijah Denson and Olan Weeks said in their initial filing.
The lawsuit alleges that LPL Financial was negligent in supervising and training Anderson. LPL fired Anderson in January 2016 for discretionary trading without authorization, according to his BrokerCheck Report.
The plaintiffs, Denson and Weeks, claim to have suffered a combined $630,000 loss in retirement accounts that were originally valued at $3.5 million.
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