Here are some of the top news highlights from the arbitration world in December 2024
1. J.P. Morgan Loses $39.7 Million Arbitration Against Barred Financial Advisor
J.P. Morgan Securities sought $39.7 million in damages from ex-advisor Edward Turley, alleging unjust enrichment and policy breaches. The arbitration panel denied J.P. Morgan's claims and instead ordered the firm to pay Turley $520,000 for legal fees and $12,650 for arbitration costs. Turley, who was barred by FINRA in 2022, faced several customer complaints leading to settlements totaling $51 million.
2. Barrick Gold Initiates Arbitration Over Mali Gold Mine Dispute
Canadian mining giant Barrick Gold has filed for arbitration with the International Centre for Settlement of Investment Disputes concerning its Loulo-Gounkoto gold mine complex in Mali. The dispute centers on a contract affected by Mali's new mining regulations. Tensions have escalated, with Mali issuing an arrest warrant for Barrick CEO Mark Bristow. Barrick holds an 80% stake in the mine, with the remaining 20% owned by the Malian government. Analysts warn that a closure could significantly impact Barrick's earnings.
3. NBA Schedules Hearing for Knicks-Raptors Legal Dispute
The NBA has set a hearing for late July 2025 to address a legal dispute between the New York Knicks and the Toronto Raptors. The lawsuit, initiated in August 2023, accuses former Knicks employee Ike Azotam of misappropriating proprietary files upon joining the Raptors. A federal judge directed the NBA to arbitrate the case, and despite criticism over delays, the league has now scheduled a hearing. The Knicks are seeking $10 million in damages.
4. Deferred Compensation Disputes Intensify Among Financial Advisors
Former Merrill Lynch financial advisors have filed FINRA arbitration claims, alleging wrongful withholding of deferred compensation after their transition to Raymond James Financial in 2022. The advisors argue that Merrill's deferred compensation plan violates the Employee Retirement Income Security Act (ERISA) and Louisiana state law. Merrill Lynch maintains that its compensation plan complies with relevant laws and is not subject to ERISA. This case underscores a broader trend of advisors seeking recovery of deferred compensation through legal avenues, potentially impacting brokerage firms financially.
5. Ethical Dispute Escalates in Mass Arbitration Case Involving Tubi
A contentious ethical dispute has arisen between Tubi, a Fox Corp subsidiary, and law firm Keller Postman. Keller Postman has moved to disqualify and sanction Tubi’s legal representation, Jenner & Block, alleging violations of California ethics rules. The accusations involve claims of deceptive tactics used to interview former claimants who had withdrawn arbitration demands against Tubi. Jenner & Block denies any misconduct, asserting that their investigation was ethical. This confrontation is part of a broader lawsuit where Tubi contends that Keller Postman improperly induced subscribers to demand arbitration over targeted advertising claims.
