Providing Peace Of Mind

KH Attorneys Successfully Represented Clients Being Sued For $15 million

| Jun 12, 2023 | Firm News

In May of 2023, KH attorneys successfully represented clients being sued for $15 million in a FINRA arbitration case for allegedly raiding employees from a business competitor. After a week-long arbitration hearing, the FINRA panel found KH’s client not liable resulting in a huge win for the client!

The claimant alleged our clients conspired to recruit, solicit, and ultimately hire their top performers. When those individuals left, other employees subsequently made the decision to follow and the claimant used this as a basis to assert a raiding claim. In the arbitration, the claimant argued that they suffered damages in excess of $15 million, for lost revenue, replacement costs, and operational costs.

Before resigning their positions, the respondents had been advised that their job titles and positions were being reorganized and their compensation structure was being significantly modified. Concerned for their future employment, they all began the heavy process of evaluating their options including looking for jobs elsewhere. Ultimately, our corporate client was able to offer the individual respondents the opportunity to continue doing business the way they had been for over twenty years, which they all gratefully accepted. Kelleher + Holland, LLC attorneys argued that the hires did not constitute a raid, but that the claimant firm effectively fired them by eliminating their job titles, responsibilities, and compensation. After a week, the FINRA panel agreed, and our clients were found not liable for the corporate raiding claims asserted against them.

Hear from our Mike Lee and Megan Brannon regarding their thoughts on the case: