KSR Wins Unfair Competition Arbitration

August 2021 – KSR secured a complete defense victory for its clients, a registered investment adviser and its two principals. KSR successfully defended a multi-million dollar claim against its clients in a FINRA arbitration. The case involved claims against KSR’s clients for breach of fiduciary duty, unfair competition and employee “raiding.” KSR asserted a counterclaim on behalf of its clients alleging that the claimant defamed KSR’s client, and sought the remedy of expungement. After a week-long arbitration hearing via Zoom, a panel of FINRA arbitrators rendered an award in favor of KSR’s clients. First, the arbitrators denied the claimant’s claims. Second, the arbitrators found that the claimant defamed KSR’s client and granted KSR’s request for expungement of the defamatory material from the client’s regulatory documents. Jim Kopecky and Daryl Schumacher handled the case for the firm.