NFL Star Forced to Take Ameriprise Suit to Arbitration
Dallas Cowboys running back Darren McFadden is putting on hold a $15 million lawsuit against Ameriprise thanks to a years-long arbitration agreement he’d signed with the brokerage, the Northwest Arkansas Democrat Gazette writes of the former University of Arkansas college football star.
McFadden sued Ameriprise in May, alleging the firm was negligent in supervising a broker who McFadden claims stole $15 million from him. But following a stipulation by attorneys representing Ameriprise that point to an arbitration agreement between the firm and McFadden, the football star’s attorneys conceded that his claims may have to be settled through Finra arbitration, according to the paper. They also agreed to a stay on the lawsuit pending arbitration, the Northwest Arkansas Democrat Gazette writes.
McFadden’s suit claims Ameriprise failed to alert him that it was investigating his broker, Michael Vick Jr., in 2010 and later failed to tell McFadden it had suspended Vick.
The suit alleges that in the 10 months before Vick’s suspension, he was “allowed” to transfer more than $3 million out of McFadden’s accounts.
McFadden’s lawsuit against Vick, dating back to 2016, is still pending, the Northwest Arkansas Democrat Gazette writes. But McFadden has asked to amend the suit by adding to the list of defendants other companies owned by Vick, Vick’s wife and a bank that allegedly permitted Vick to make more than 1,000 withdrawals from McFadden’s account, according to the publication.
According to the suit, Vick, who came to Ameriprise in 2001 after getting sacked from Merrill Lynch, allegedly recruited his personal network to convince McFadden to give him “virtually the broadest and most sweeping Arkansas General Durable Power of Attorney ever contemplated,” the Northwest Arkansas Democrat Gazette writes. McFadden also filed a suit in May against Vick’s sister and her husband, according to the publication.