Ex-Merrill Lynch Advisor to Appeal Ruling Dismissing ERISA Class Action

Posted on April 23rd, 2025 at 11:52 AM
Ex-Merrill Lynch Advisor to Appeal Ruling Dismissing ERISA Class Action

From the desk of Jim Eccleston at Eccleston Law

A former Merrill Lynch advisor plans to challenge a federal judge’s ruling that dismissed his proposed class action against the firm when it forfeited his deferred compensation. According to a notice filed in federal court in Charlotte, the advisor will appeal the decision, which sided with Merrill and rejected the application of federal retirement laws (ERISA) to the firm’s deferred compensation plan.

AdvisorHub reports that this litigation is part of a broader wave of legal actions filed both in court and in FINRA’s arbitration forum, seeking to classify deferred compensation plans under ERISA. Merrill itself has reported at least 32 claims covering roughly 240 former advisors.

The Merrill decision is at odds with a New York federal court decision finding that ERISA indeed did apply to deferred compensation plans offered by Morgan Stanley. Likewise, previously Wells Fargo settled a comparable case in 2020 for $79 million.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

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