Sonn Law Group is Investigating Brokerage Firms Over Forfeiture of Deferred Compensation Owed to Financial Advisors
A recent $79M class action settlement by Wells Fargo suggests that financial advisors may be cheated out of deferred compensation to which they are entitled when they leave a brokerage firm to join a new brokerage firm.
Sonn Law Group has launched an investigation into claims regarding financial advisors who have “forfeited” their deferred compensation when they left their brokerage firm to join a new brokerage firm. Financial advisors who were the victims of such forfeitures of “deferred compensation” may have claims for damages. Please contact us using the form below for a free consultation.
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Wells Fargo Pays $79M to Settle Allegations of Unlawfully Withholding Deferred Compensation from Thousands of Former Employees
After a three-year litigation battle, Wells Fargo agreed to a $79 million settlement agreement in order to settle allegations that it illegally made thousands of former employees forfeit deferred compensation. Despite the settlement, a Wells Fargo spokesperson said that it has no plans to make substantive changes to how it handles deferred compensation, and maintains that ERISA does not cover its compensation plan.
Credit Suisse Involved in Similar Dispute in 2017
In 2017, former Credit Suisse representatives filed an arbitration claim against the firm seeking deferred compensation. Credit Suisse’s employment agreements at the time outlined that financial advisors would lose their deferred compensation if they voluntarily resigned or were terminated with cause. The former advisors claim that Credit Suisse forced advisors out, masking a layoff as a voluntary resignation to avoid paying deferred compensation.
A FINRA panel awarded the former Credit Suisse advisors a total of approximately $2.1 million.
The Sonn Law Group is currently investigating claims regarding financial advisors who have forfeited their deferred compensation when they left their brokerage firm to join a new brokerage firm. Financial advisors who were the victims of such forfeitures of “deferred compensation” may have a claim for damages. For a free consultation, please call us now at 305.912.3000 or complete our contact form.