Tullett Prebon wins $33 mln in damages over BGC poaching

Thu Jul 10, 2014 9:16am EDT

* Tullett says FINRA finds in favour of its U.S. units

* BGC to pay $33.3 mln in damages

* Tullett to pay $6.1 mln over 2007 acquisition

July 10 (Reuters) - British interdealer broker Tullett Prebon has won $33.3 million in damages from rival BGC Partners over the alleged poaching of staff from its United States-based subsidiaries in 2009.

Arbitrators for the Financial Industry Regulatory Authority (FINRA), Wall Street's industry-funded regulator, found BGC liable for $13 million and a number of its brokers liable for a further $20 million, BGC said in a statement on Thursday.

BGC said it plans to cover the damages incurred by its staff and had already made provisions for the cost.

"The FINRA award will not have a material financial effect on BGC," the company said.

In its own statement, Tullett Prebon said FINRA had ordered it to pay $6.1 million in compensation to the former owners of Chapdelaine Corporate Securities & Co, which it acquired in 2007. The sum relates to outstanding payments associated with the transaction.

Interdealer brokers match buyers and sellers of currencies, bonds and swaps in a fiercely competitive market. Several long-running feuds have in the past erupted between the major players in the industry, over issues such as poaching and patent infringement.

Tullett and BGC are due to meet in a U.S. court in the autumn over a separate legal action in which Tullett Prebon Plc, rather than its U.S. subsidiaries, is seeking damages from BGC for erosion of shareholder value. Tullett has not given a figure for the amount of damages it is claiming.

The two have already clashed in a London court over poaching, with Tullett Prebon winning an undisclosed damages from New York-based BGC. Anthony Verrier, a money market broker who moved from Tullett to BGC, was banned by Britain's financial watchdog for his role in the raid. (Editing by David Holmes)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.