Aug. 30, 2022 — Maurice Wutscher attorney Brady Hermann was quoted in a recent AdvisorHub article about an increase in defamation claims brought by advisors against firms for language they used on the departing advisor’s Form U5.
Firms must file a U5 notice with the Financial Industry Regulatory Authority and must report on the form the reason a broker has left.
According to AdvisorHub, firms are steering away from hiring brokers who have been reported as “discharged,” causing brokers to go through litigation.
“Defamation claims, in particular, have increased significantly,” Mr. Hermann told AdvisorHub.
Brady Hermann is senior counsel in the Boston and New York offices of Maurice Wutscher LLP. He regularly represents financial services companies including banks, broker-dealers, financial advisors, financial asset buyers and third party debt collectors in individual, class action and regulatory matters. He has successfully represented clients throughout the country against claims for violations of securities laws, the Fair Debt Collection Practices Act, the Telephone Consumer Protection Act, the Fair Credit Reporting Act, and various state consumer protection statutes.