BGC Partners Inc (BGCP)

[johnsyn]

BGC Announces That Broker Hiring Claims By Tullett Have Been Completely Denied In A FINRA Arbitration

9:06 AM 1/14/2013 - PR Newswire

NEW YORK, Jan. 14, 2013 /PRNewswire/ -- BGC Financial, L.P. ("BGC"), an entity of BGC Partners, Inc. (BGCP:NASDAQ), is pleased to announce that claims in excess of $16 million brought by Tullett Prebon Financial Services LLC and Tullett Prebon Americas Corp. ("Tullett") against BGC have been denied in their entirety in a FINRA arbitration.

(Logo: http://photos.prnewswire.com/prnh/20110720/MM38935LOGO )

Tullett's claims were brought against BGC and nine brokers who resigned from Tullett and joined BGC in 2011. In addition to losing all claims for damages against BGC, Tullett was ordered to pay a total of approximately $380,000 owed to the nine brokers who joined BGC.

Tullett claimed that BGC "raided" Tullett's U.S. repo desk, that the desk head breached his contract with Tullett, and that the other brokers breached duties to Tullett. Tullett also accused BGC of unfair competition, misappropriating confidential information, and violating the FINRA Rules of Conduct. In Tullett's Statement of Claim, it demanded compensatory damages from BGC, punitive damages, a permanent injunction barring BGC from recruiting or hiring any Tullett employees in the future, and a referral to the SEC. Tullett also sought to recover compensation that it had paid to the desk head, as well as compensation that BGC paid to hire the nine repo brokers.

All Tullett's claims were denied in full, affirming that BGC's recruitment and employment of the repo brokers was lawful and appropriate.

The arbitration is one of a number of lawsuits filed by Tullett, all making similar allegations, claiming that BGC improperly recruited or "raided" employees from Tullett in the U.S. in the 2009-2011 time period. This is the first of the matters to be adjudicated.