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Merrill Lynch to Pay $40 Million in Deferred Comp Class Action Suit

By George Miller  of Shustak Reynolds & Partners, P.C. posted on Thursday, August 30, 2012.

In late August, Merrill Lynch agreed to a proposed $40 million class action settlement to settle claims the firm refused to pay deferred compensation owed to its brokers after its 2008 merger with Bank of America.

The case, which involves a class of roughly 1,400 current and former Merrill brokers, is pending in the U.S. District Court for the Southern District of New York. The Court must approve the settlement before it is finalized, and the parties are still working to define the class of brokers that will be covered by the settlement. While disputes amongst brokers and their employing firm normally are required to be arbitrated before FINRA’s Arbitration Division, FINRA does not administer class action proceedings.

There are hundreds–perhaps thousands–of current and former Merrill Lynch registered representatives who may not be part of the class action settlement and who may have viable claims against the firm for unpaid deferred compensation.

Our firm handles a wide range of securities and FINRA related issues and has substantial expertise and experience in the securities and brokerage business. If you are a current or former Merrill Lynch registered representative and believe you may have a claim against the firm for unpaid deferred compensation or other wrongdoing in connection with your employment, please contact our firm’s managing partner, Erwin Shustak, at 619.696.9500 or [email protected].

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