(Bloomberg) — Credit score Suisse Group AG is in search of to vacate an arbitrator’s determination to award $1.3 million to a former monetary adviser who accused the financial institution of holding again his deferred compensation following the closure of its US wealth administration unit in 2015.
The financial institution filed a petition on Thursday asking a federal courtroom in New York to overturn the award to James D. Garrity, who labored for Credit score Suisse for 15 years earlier than becoming a member of Morgan Stanley in 2015.
The Swiss financial institution had nearly 300 brokers in its US wealth administration unit when it introduced it was promoting its US private-banking enterprise to Wells Fargo & Co. in 2015. Garrity’s case is amongst dozens of claims made in opposition to Credit score Suisse because it made the cope with Wells Fargo, which former advisers declare constituted termination with out trigger that entitles them to deferred compensation.
Credit score Suisse maintained that Garrity wasn’t entitled to deferred compensation as a result of he had voluntarily resigned.
Garrity’s attorneys with Lax & Neville LLP have gained greater than $32 million for 26 former Credit score Suisse advisers in eight arbitrations, in line with its web site. The financial institution has sought to vacate at the least seven of these awards, in line with the agency.
The go well with was anticipated, stated Barry Lax, an legal professional for Garrity.
“Credit score Suisse doesn’t get to relitigate these claims in courtroom, as each courtroom has dominated,” Lax stated.
The case is Credit score Suisse Securities (USA) LLC v James D. Garrity, 23-cv-1830, US District Court docket, Southern District of New York.