10th Jul 2014 07:59
LONDON (Alliance News) - The Financial Industry Regulatory Authority or FINRA Arbitration Panel in the matter involving Tullett Prebon PLC, BGC and certain others has issued its award, BGC Partners Inc. said in a statement.
Tullett was found to have breached its contract with the people who sold it Chapdelaine Corporate Securities & Co (many of whom now work for BGC) and is ordered to pay them over USD6 million in damages. Tullett has also been found to have wrongly refused to pay expenses to one of its employees, who was awarded over USD222,000.
BGC was found solely liable for approximately USD13 million. Certain desk heads that moved to BGC have been found liable for a total of approximately USD20 million. BGC expects the awards against these desk heads will be paid for by BGC. Tullett's Management Reports show it has paid over USD40 million in attorneys' fees in this matter and a related New Jersey matter over the last two years.
"Tullett has spent more than it recovered, which was a waste of resources," said Sean Windeatt, Chief Operating Officer of BGC Partners Inc.
Tullett's final position claimed over USD214 million in damages, and in earlier positions Tullett had claimed over a billion dollars. It also sought punitive damages and findings against BGC executives, all of which were denied. In a separate FINRA judgment last year, Tullett's claim of USD16 million in damages against BGC was denied and Tullett was ordered to pay USD380,000 to a group of brokers in that matter.
BGC stated that the FINRA award will not have a material financial effect on BGC, which had appropriately reserved for it.
Copyright RTT News/dpa-AFX
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