Thursday, March 23, 2023

Credit score Suisse Contests $1.3 Million Award to Ex-Advisor

(Bloomberg) — Credit score Suisse Group AG is looking for to vacate an arbitrator’s choice to award $1.3 million to a former monetary adviser who accused the financial institution of holding again his deferred compensation following the closure of its US wealth administration unit in 2015.

The financial institution filed a petition on Thursday asking a federal courtroom in New York to overturn the award to James D. Garrity, who labored for Credit score Suisse for 15 years earlier than becoming a member of Morgan Stanley in 2015. 

The Swiss financial institution had virtually 300 brokers in its US wealth administration unit when it introduced it was promoting its US private-banking enterprise to Wells Fargo & Co. in 2015. Garrity’s case is amongst dozens of claims made towards Credit score Suisse because it made the cope with Wells Fargo, which former advisers declare constituted termination with out trigger that entitles them to deferred compensation.

Credit score Suisse maintained that Garrity wasn’t entitled to deferred compensation as a result of he had voluntarily resigned.

Garrity’s attorneys with Lax & Neville LLP have received greater than $32 million for 26 former Credit score Suisse advisers in eight arbitrations, in accordance with its web site. The financial institution has sought to vacate at the least seven of these awards, in accordance with the agency.

The swimsuit was anticipated, mentioned Barry Lax, an lawyer for Garrity.

“Credit score Suisse doesn’t get to relitigate these claims in courtroom, as each courtroom has dominated,” Lax mentioned.

The case is Credit score Suisse Securities (USA) LLC v James D. Garrity, 23-cv-1830, US District Courtroom, Southern District of New York.

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