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Stark & Stark Shareholders Comment on Promissory Note Class Action

Stark & Stark Employment Group Chair, Thomas B. Lewis, and Stark & Stark Securities Group Shareholder, Bill Singer, were quoted in the September 29, 2009 RegisteredRep.com article, Can You Take It With You?

The article discusses a recent class action lawsuit led by Mark Thierman which seeks to change the current practice of brokerage firm's demanding advisors pay back the full balance of promissory notes after they have left the firm. The suit was filed the same day a FINRA arbitration panel ordered Thomas Banus to repay Smith Barney roughly $39,000, the balance plus interest on the loan Banus received when he joined Smith Barney two years earlier.

The suit argues that Citigroup did not fulfill it's obligations to Banus, or the other members of the class action, and the mismanagement of the firm forced the advisors to seek employment elsewhere.

If Thierman is successful in proving that Citigroup breached that duty, due to the similarity of  employment contracts used at brokerage firms, this suit could have a major impact on large firms throughout the country. However, Mr. Singer states, "At the end of the day the defense will say, 'A contract is a contract. You knew what you were getting into when you signed the deal. Now, own up to it."

You can read the full article online here. (PDF)

Full post as published by New Jersey Law Blog on September 29, 2009 (boomark / email).