FORT LAUDERDALE, Fla., Jan. 23, 2012 (GLOBE NEWSWIRE) -- The Law Firm of David R. Chase, P.A., headed by former SEC Prosecutor, David R. Chase, announces that it is investigating potential arbitration claims against Merrill Lynch on behalf of Merrill Lynch Brokers who left the employment of Merrill Lynch after its acquisition by Bank of America, as announced on September 15, 2008. The Firm is currently representing several former Merrill Lynch brokers who resigned after the announcement.
The Bank of America – Merrill Lynch merger triggered "change of control" clauses that impacted the shares of Merrill Lynch stock held in brokers' FACAAP and other equity-based programs. Under the FACAAP, LTICP, Growth Award, Wealthbuilder and other deferred compensation plans, if a broker resigned for "Good Reason", as that term is defined in the plans, Merrill Lynch was obligated to immediately vest and pay the awards in cash to the exiting broker.
Under the plan documents, awards vested at approximately $37 a share, even though Merrill Lynch stock was trading significantly lower on the September 15, 2008 acquisition announcement. Apparently in response to this looming, significant financial exposure, the firms sought to have Merrill Lynch brokers waive their rights to the "Good Reason" resignation in new Bank of America retention agreements offered to several brokers during November 2008. Merrill Lynch brokers were thus placed in a very difficult and unfair position: either they waived their rights to benefits through exercise of the "Good Reason" provisions or, if they did not, they would be removed from the lucrative account redistribution list. Compounding the difficulty, Merrill Lynch did not release the 2009 compensation plan, which materially, negatively impacted those producing less than $600,000 a year, until after the deadline for signing the retention agreement. Under the plan documents, there is no time period "cut off" for claiming a "Good Reason" resignation.
A FINRA Arbitration Panel previously awarded two former Merrill Lynch brokers compensatory damages for deferred compensation benefits against Merrill Lynch arising out of their departure after the acquisition.
If you left Merrill Lynch after the announcement of change in control resulting from Bank of America's acquisition, or even if you signed the transition agreement with Bank of America, you still may be entitled to compensation for plan benefits denied you. Cases are taken on a contingency arrangement.
The Firm's principal, David R. Chase, has been practicing for almost two decades, is AV-Rated by Martindale-Hubbell -- its highest competence and ethics rating -- and previously served in the Enforcement Division of the SEC.