Following six days of hearings, a FINRA arbitration panel in Chicago awarded RLR client Kieran Fitzgerald $1,335,000 in compensatory damages for defamation against his former employer Sun Trading LLC, a high-frequency trading firm, which improperly marked his Form U5 and accused him of sabotaging the successful market-making algorithm that he had created for the firm.  The three-arbitrator panel also recommended full “expungement” from Mr. Fitzgerald’s industry record of all such false statements.  A copy of the Award can be found here.

In a modern-day David and Goliath battle, Sun Trading, represented by Seyfarth Shaw, commenced arbitration against Mr. Fitzgerald, seeking in excess of $1,000,000 in damages for breach of contract, breach of fiduciary duty, and violation of the Computer Fraud and Abuse Act.  The causes of action all related to Sun’s claim – now completely discredited – that Mr. Fitzgerald, prior to resigning from the firm, made a “series of unauthorized alterations and deletions to one of Sun’s proprietary trading algorithms.”

Mr. Fitzgerald hired RLR litigation partner Harry W. Lipman, who, with assistance from Stacy L. Ceslowitz, of counsel to the firm, filed counterclaims on Mr. Fitzgerald’s behalf, asking for expungement and damages for defamation.

The facts of the case are extraordinary.  Three days after Mr. Fitzgerald resigned from Sun, the firm unilaterally placed him on “unpaid leave” and shortly thereafter fired him and reported to FINRA that Mr. Fitzgerald had made unauthorized changes to Sun’s trading systems in violation of firm policy and industry standards of conduct.

Six months later, just as Mr. Fitzgerald was starting his new job (which he had secured prior to resigning from Sun), Sun escalated its attack by commencing the arbitration against Mr. Fitzgerald.

RLR filed counterclaims for Mr. Fitzgerald for defamation and expungement, and engaged in an aggressive and highly technical course of discovery to unearth the truth behind the allegations.

RLR’s dogged approach to discovery paid off.  The documentary evidence and, later, witness testimony revealed that Sun’s “internal review” was, at best, baseless, the allegations of wrongdoing were unsupported, and Sun’s arbitration was calculated to interfere with Mr. Fitzgerald’s career.  Following six days of hearings, the FINRA panel denied all of Sun’s claims and awarded Mr. Fitzgerald $1,335,000 in compensatory damages for defamation and recommended complete expungement of all allegations of wrongdoing from Mr. Fitzgerald’s FINRA record.

November 28, 2019

RLR Wins Large Defamation Award and “Expungement” for Equities Trader Against Hedge Fund

Following six days of hearings, a FINRA arbitration panel in Chicago awarded RLR client Kieran Fitzgerald $1,335,000 in compensatory damages for defamation against his former employer...

November 24, 2019

RLR Succeeds in Obtaining Carried Interest for Client in NY State Court

On April 16, 2014, Justice Jeffrey K. Oing of the New York Supreme Court’s Commercial Division granted the motion of RLR client Sary Awad for summary judgment and held that he was owed...

November 22, 2019

RLR Wins Dismissal of Federal Case Against Israeli Client

On August 15,2014, Judge Stanton of the Southern District of New York issued a decision granting the motion of our client, A.G.R, Eshcol Overseas, Ltd. To dismiss the case against it by Kuehne...

November 20, 2019

Mark S. Helweil Selected for “Super Lawyers”

RLR of-counsel attorney Mark Helweil has been selected for inclusion as a one of New York’s 2014 “Super Lawyers” in the area of Matrimonial and Family Law. Super Lawyers...

November 18, 2019

RLR Ranked One of the New York Area’s Best Law Firms by New York Magazine

RLR was listed in the May 21, 2012 issue of New York Magazine as one of the New York Area’s Best Law Firms based upon...

November 17, 2019

Robert A. Freilich named to “Super Lawyers” New York Metro Rising Stars list

RLR associate Robert Freilich been selected for inclusion as a one of “Super Lawyers” New York Metro Rising Stars in the area of Business Litigation. Super Lawyers is a rating service of ...

November 15, 2019

Mark M. Rottenberg Rated Highest AV Preeminent® by Martindale-Hubbell® Peer Review Ratings™

RLR member Mark Rottenberg has for more than twenty-five years been rated AV Preeminent® by Martindale-Hubbell® Peer...

November 12, 2019

Mark M. Rottenberg Selected as one of “Bergen’s Top Lawyers”

RLR member Mark Rottenberg has this year again been selected for inclusion as a one of “Bergen’s Top Lawyers” in the area of Business, Corporate

November 6, 2019

Mark M. Rottenberg Selected for “Super Lawyers”

RLR member Mark Rottenberg has this year again been selected for inclusion as a one of New York’s “Super Lawyers” in the area of Business Litigation. Super Lawyers is a rating service...