In a case that may mark a significant shift in how securities industry arbitrators calculate damages that stem from violations of a non-compete agreement, a Financial Industry Regulatory Authority panel has ordered a broker and his new employer to pay damages equal to 4 percent of the assets of the clients who switched firms. The panel awarded $957,000 to Charles Schwab in its suit against a broker who quit to join RBC Dain Rauscher and persuaded clients with nearly $24 million in investments to follow him.
Ruling Called 'Paradigm Shift' in Non-Compete Cases
The Legal Intelligencer
October 3, 2008