New York Securities Lawyer Blog
On August 29, 2013, the Honorable Claudia Wilken of the District Court for the Eastern District of New York ordered and approved an amended class action settlement regarding claims raised by a class of former employees claiming that Bank of America/Merrill Lynch (“Merrill Lynch”) failed to remit their last commission wages during the statutory period. The class action was brought by John LaBriola, on behalf of himself and all other financial advisors similarly situated, who quit or were terminated from employment with Merrill Lynch and were not paid their final commission wages within the period allotted under California Labor Code Sections 201(a) or 202(a). Specifically, the class action complaint alleged that Merrill Lynch “had and continue[s] to have an illegal policy of failing to pay financial advisors the final commissions due to them until the ‘regular commission pay date,’ even if that date was days or weeks after the employee’s last date of employment, or even waiting another month or longer after the next regular commission pay date, all of which are well beyond the statutory permitted period. This policy is in violation of the California Labor Code ยงยง 201 and 202.” Pursuant to the most recently approved Notice of Proposed Class Action (“Class Notice”), the District Court Judge approved a settlement for $2.775 million. The Class Notice will be mailed to class members within 21 calendar days after entry of the Court’s Amended Order Granting Preliminary Approval. The class member must opt out of the class within 45 calendar days after mailing of the Class Notice. This settlement agreement requires class members to opt-out of the class if they decide they do not want to be bound by the class action settlement agreement and judgment.
Lax & Neville LLP has nationally represented individuals, securities industry employees and financial services professionals in employment matters and securities-related and commercial litigation, including bonus, severance, labor law and discrimination disputes. Please contact our team of attorneys for a consultation at (212) 696-1999.