Vedder Price

Vedder Thinking | News Vedder Price Secures Winning Outcome in FINRA Arbitration Matter

Press Release

Reader View

In connection with a Financial Industry Regulatory Authority (FINRA) arbitration proceeding that originated in 2021, Vedder Price’s litigation team recently represented three individual respondents and achieved a winning outcome.  The respondents were sued by J.P. Morgan Securities, LLC (JPMS) for allegedly violating restrictive covenants, breaching duties of loyalty, intentional interference, and unfair competition.  

“This outcome was the result of an overall team effort, especially on the part of our clients, who were very pleased with this end result,” said Vedder Price Shareholder James Garvey, who led the defense team.  

JPMS contended that in connection with each of the respondents voluntarily resigning to join another financial services firm, they had violated contractual and other alleged continuing duties to JPMS, including in relation to solicitation of clients. JPMS sought compensatory damages totaling in excess of $3 million, in addition to punitive damages and attorneys’ fees.

The case was tried over ten separate hearing sessions, with the final hearing concluding in mid-May of 2022.

In the final award, the three-person arbitration panel not only found entirely in the respondents’ favor on JPMS’s claims, but it also assessed forum and hearing fees exclusively against JPMS. 

Vedder Price has a significant litigation and counseling practice in the employee restrictive covenant and trade secrets space, including in relation to the financial services industry. That practices include representing both employers and employees in disputes, including in court cases and in arbitration proceedings.


James V. Garvey