Tag Archives: securities litigation

Maurice Wutscher’s Brady Hermann Quoted About Breach-of-Contract Lawsuit

Oct. 17, 2022 ­— Maurice Wutscher attorney Brady Hermann spoke to AdvisorHub recently about a financial services company’s breach-of-contract lawsuit against a former in-house counsel.

The lawsuit alleges the attorney used confidential information he learned while employed regarding the company’s employment practices and litigation strategies when he assisted former brokers set up a competing Registered Investment Advisor, which he himself subsequently joined as general counsel.

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.

Maurice Wutscher’s Brady Hermann Quoted About Broker Defamation Suits Over U5 Language

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.

Maurice Wutscher’s Brady Hermann Discusses Compliance Concerns Over Brokers’ Excessive Trading in Own Accounts

May 6, 2022 ­— Maurice Wutscher attorney Brady Hermann spoke to AdvisorHub recently about the termination of a broker for excessive trading in his personal account and why brokers who trade frequently in their own accounts should tread carefully.

The Financial Industry Regulatory Authority requires firms to keep track of brokers’ trading as a way of protecting clients’ interests.

Mr. Hermann said compliance departments are paying attention to what financial advisors do in their personal accounts, looking for potential red flags that could lead to harmful conduct in client accounts. This is especially true if a broker is on heightened supervision.

“When brokers are on this heightened supervision, they have, obviously, a set of rules that they have to follow, and then if they break it, they typically get fired,” 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.

Maurice Wutscher’s Brady Hermann Quoted About Brokers’ Efforts to Vacate FINRA Award

Feb. 24, 2022 ­— Maurice Wutscher attorney Brady Hermann was quoted in a recent AdvisorHub article about two brokers’ attempt to vacate a Financial Industry Regulatory Authority award denying their request to expunge termination language their former employer included on their Form U5.

The brokers argued the award, issued in November 2021 by a FINRA panel, should be vacated as the arbitrator who chaired the panel failed to disclose his prior work for their former employer.

Mr. Hermann said an arbitrator’s failure to disclose his contract work for the company over a decade ago was unlikely to be considered a substantial relationship with a party and, therefore, they were unlikely to succeed on vacating the award.

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.

Maurice Wutscher’s Brady Hermann Quoted About Brokers’ Promissory Note Cases

Jan. 17, 2022 ­— Maurice Wutscher attorney Brady Hermann was quoted in a recent AdvisorHub article about promissory note cases involving brokers who leave for competing firms and the risks brokers face in fighting them.

“It’s not uncommon for a departing broker to try to extricate themselves from note obligations, even though counterclaims are rarely successful and often lead to a broker paying more than if they had reached an agreement with their firm when they left,” Mr. Hermann said.

“’These tend to be very clear cut cases and usually result in the broker being liable for significantly more than the outstanding balance on the note since arbitration panels typically award firms interest, costs and attorneys’ fees pursuant to the terms of the promissory notes,’” he said.

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.