FINRA Arbitration Panel Clears Advisor's Record of Defamatory Allegations

Posted on January 10th, 2025 at 2:14 PM
FINRA Arbitration Panel Clears Advisor's Record of Defamatory Allegations

From the desk of Jim Eccleston at Eccleston Law

A FINRA arbitration panel has ruled in favor of Mary J. Howard, a former RBC Wealth Management advisor, allowing her to expunge defamatory allegations from her Form U-5 termination record.

According to AdvisorHub, the panel determined that the allegations made by her former employer, Robert W. Baird & Co., were defamatory in nature and authorized revisions to reflect that Howard voluntarily left the firm in April 2023.

Robert W. Baird &  Co. had previously stated on Howard’s U5 that she was “permitted to resign” after failing to follow firm policy. However, the FINRA panel found these allegations defamatory and ruled that Howard’s record should be amended to show a voluntary departure. The allegations arose as Howard and a business partner prepared to leave Baird. According to Howard’s BrokerCheck comment, the firm learned of their plans after her partner sent emails containing client data to a personal account.

AdvisorHub reports that Howard filed a $5 million claim against Baird, alleging defamation, tortious interference with her business, and unjust enrichment. While the arbitration award does not detail the settlement terms, it confirms that Howard and Baird reached a confidential settlement in October 2023 regarding the damages.

 

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

Tags: eccleston, eccleston law, finra

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