The securities lawyers at KlaymanToskes are pursuing arbitration claims against Merrill Lynch (CRD#: 7691) on behalf of financial advisors who have resigned from Merrill Lynch and have been denied their deferred compensation.
After an important recent ruling in Shafer, et al. v. Morgan Stanley, et al., we believe financial advisors and brokers have a strong case to recover deferred compensation losses suffered after they departed Merrill Lynch, through FINRA arbitration.
IMPORTANT! Forfeiture clauses used to deny advisors their deferred compensation may be found unenforceable under ERISA. Advisors who find themselves in this position may be entitled to their forfeited deferred compensation.
Financial advisors and brokers that suffered deferred compensation losses when they left Merrill Lynch are encouraged to contact attorney Lawrence L. Klayman, Esq., at 888-997-9956 or by email at investigations@klaymantoskes.com to discuss recovery options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
If you have over $100,000 in your deferred compensation plan that you are entitled to, then it may be in your best interest to file an individual FINRA arbitration claim over joining a class action lawsuit. This is to your benefit.
Why? Individual arbitration offers a quicker resolution and the potential for a higher recovery by focusing specifically on your case. Class action lawsuits are typically slower and often result in significantly smaller recoveries due to the need to distribute the settlement among many plaintiffs.* (You can read more about the benefits of filing an individual arbitration claim over joining a class action here.)
While we do encourage you to reach out to our firm first, we understand that it’s important for you to consider all your options when it comes to recovering your deferred compensation losses. Our goal is for you to have all the information you need to make the best informed decision when it comes to recovering your deferred compensation losses.
Why Work with KlaymanToskes?
Our securities attorneys have helped plaintiffs recover over $600 million* in compensation for damages suffered as a result of securities violations. We currently represent numerous Merrill Lynch financial advisors in pursuit of their forfeited deferred compensation. Contact our firm at 888-997-9956 or by email at investigations@klaymantoskes.com to discuss recovery options.
In light of the recent court ruling in Shafer, et al. v. Morgan Stanley, et al. (Case 1:20-cv-11047-PGG), Morgan Stanley’s deferred compensation plans were found to fall under the protection of ERISA as “individual account plans.” These plans were classified as deferred compensation with individual accounts for each participant, funded by contributions.
This decision is significant for financial advisors as it acknowledges that deferred compensation plans fall under the protection of ERISA, thus legally classifying these plans as retirement funds.
What does this mean for you?
Forfeiture clauses used to deny advisors their deferred compensation may be found unenforceable under ERISA. Advisors who find themselves in this position may be entitled to their forfeited deferred compensation.
Are you eligible for potential recovery?
Financial advisors who left Merrill Lynch within the last six years and had their deferred compensation plans withheld are eligible to pursue individual arbitration claims through FINRA to recover their financial losses.
In this class action case, several former Morgan Stanley financial advisors challenged Morgan Stanley’s deferred compensation plans, claiming that Morgan Stanley violated the Employee Retirement Income Security Act (ERISA) by withholding deferred compensation when advisors left the firm. The plaintiffs argued that these compensation plans should be classified as ERISA-protected pension plans, which would make the deferred compensation vested and non-forfeitable.
The Court dismissed the class action and ordered plaintiffs to arbitrate their claims, however the ruling determined that Morgan Stanley’s deferred compensation plans are indeed covered under ERISA.
This classification means that the compensation is protected under federal law, making it unlawful for Morgan Stanley and other brokerage firms such as Merrill Lynch to withhold these funds when advisors leave the firm. The ruling significantly strengthens the position of former advisors in seeking to recover their withheld compensation through individual FINRA arbitration claims. The Court’s decision emphasizes the importance of ERISA protections for deferred compensation plans and sets a precedent for similar cases in the future.
What does this mean for brokers and advisors who formerly worked at Merrill Lynch?
The Court’s ruling that Morgan Stanley’s deferred compensation plans are covered under ERISA has significant implications for financial advisors and brokers who also worked at Merrill Lynch and have suffered deferred compensation losses when they left Merrill Lynch.
This decision means that:
Overall, the Court’s decision empowers former Merrill Lynch financial advisors and brokers to take legal action to recover deferred compensation that was unlawfully withheld, offering them a stronger chance of success in their claims.
If you left Merrill Lynch within the last six years and had your deferred compensation plan withheld, you may be entitled to recover those funds through FINRA arbitration. A 2024 court ruling confirmed that these plans are protected under ERISA, making any withholding a violation of ERISA law.
Contact KlaymanToskes to explore your options and take the first step towards reclaiming your financial security.
Yes, you can seek recovery through a process called FINRA arbitration. Unlike traditional lawsuits and class action lawsuits, FINRA arbitration offers a much faster and more efficient way to resolve disputes. This process is specifically designed for the financial industry and provides a forum to address claims such as the unlawful withholding of deferred compensation.
FINRA recommends that you have an attorney represent you during arbitration or mediation proceedings, as they can provide valuable experience, direction, and advice. Brokerage firms, like Merrill Lynch, are generally represented by an attorney in arbitration proceedings. Even if you choose not to hire an attorney, you may be facing one on the other side.
Contact attorney Lawrence L. Klayman, Esq., at 888-997-9956 or by email at investigations@klaymantoskes.com to discuss your eligibility and the steps to take in pursuing a FINRA arbitration claim. No attorney’s fees will be collected unless we secure a financial recovery for you. Take action now to recover your deferred compensation from Merrill Lynch.
Financial advisors and brokers who have resigned from Merrill Lynch within the last six years and lost their deferred compensation plans are eligible to pursue recovery. Following the recent ruling in Shafer, et al. v. Morgan Stanley, et al. (Case 1:20-cv-11047-PGG), there is a high likelihood of recovering these losses.
The court determined that deferred compensation plans fall under ERISA, meaning they are protected as retirement funds. Forfeiting your deferred compensation plan upon leaving Merrill Lynch was a violation of ERISA law, as retirement money cannot be unlawfully withheld.
Therefore, eligible individuals can file an individual FINRA arbitration claim against Merrill Lynch to recover the funds that were illegally withheld or unpaid. The Court’s holding significantly strengthens FINRA arbitration claims against Merrill Lynch based on the applicability of ERISA and Merrill Lynch’s violation of it.