Wrongful Termination
Wrongful termination claims arise when a brokerage firm fires a registered representative to cover its own supervisory failure, to seize deferred compensation, or in retaliation for raising compliance concerns. Tracy Pride Stoneman represents registered representatives in these claims in FINRA arbitration nationwide.
By Tracy Pride Stoneman, securities arbitration attorney Updated
| What happened | Rule or law | How it is proved |
|---|---|---|
| Fired to pin a supervisory failure on the broker | The employment agreement; FINRA Rule 2010; state employment law | Compliance records showing the firm approved the conduct it later cited |
| Forfeited deferred compensation and forgivable loans | The deferred-compensation plan and promissory-note terms; FINRA Rule 13200 (industry disputes are arbitrated at FINRA) | Plan documents, loan balances, the timing of the termination against vesting dates |
| Retaliation for reporting violations | Sarbanes-Oxley §806 and Dodd-Frank §922 whistleblower protections; state law | Written complaints to compliance and what happened next |
| Forum | FINRA Rule 13200: disputes between a member firm and an associated person must be arbitrated at FINRA, with narrow exceptions for statutory discrimination claims | The arbitration agreement in the Form U-4 |
A FINRA panel can award compensatory damages (out-of-pocket losses or market-adjusted “well-managed account” damages), interest, costs, attorney’s fees where a statute or contract allows them, and punitive damages in egregious cases. Claims must be filed within six years of the events under FINRA Rule 12206, and shorter state statutes of limitation may also apply.
If any of this sounds like your account, the next step costs nothing: a free, honest evaluation. Tell me what happened or call (719) 783-0303.
Common questions
Wrongful Termination: what clients ask
Do broker employment disputes go to court?
Most do not. Disputes between brokers and their firms are generally required to go to FINRA arbitration, although some claims, such as certain discrimination claims, can be handled differently.
What can a broker recover?
Depending on the case: lost compensation, unpaid commissions or deferred pay, correction of the Form U5, and in some cases damages for defamation.
What if I was fired for reporting misconduct?
Retaliation for reporting securities violations can give rise to additional claims, including whistleblower protections under federal law.
Your move
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Tell me what happened. I will tell you honestly whether you have a case worth pursuing — and every way I can be paid, including contingency: nothing unless you recover.