Credit Suisse Beats $300M Suit from Its Former U.S. Brokers
A federal judge has dismissed a class action lawsuit against Credit Suisse brought by one of its former brokers who claimed the bank withheld money from its U.S.-based representatives when Credit Suisse shuttered their unit in 2015, Reuters writes.
Christopher Laver, a 13-year veteran of Credit Suisse, according to Reuters, claimed in February that the company withheld up to $300 million in deferred pay from brokers who didn’t transition to Wells Fargo.
Credit Suisse had signed an exclusive agreement with Wells Fargo in October 2015 for around 275 of the Swiss bank’s brokers in U.S. branches it planned to close. Laver claimed Credit Suisse knew many brokers weren’t planning to move to Wells Fargo but signed a recruiting agreement to avoid a “change of control” situation under which it would have been required to pay deferred compensation to the representatives.
But on Thursday, U.S. District Judge William Orrick in San Francisco said Laver had to abide by the arbitration agreement in his contract with the firm and that he couldn’t pursue his class action, filed on behalf of around 200 former Credit Suisse representatives in San Francisco, Reuters reports.
Orrick sided with Credit Suisse, which had said the arbitration details should be resolved in New York instead, according to the newswire.
Laver’s lawyer did not respond to Reuters’ requests for comment. Credit Suisse tells the newswire it’s pleased with the decision.