Judge clears way for broker pay lawsuit against Ameriprise
March 27, 2019 by Kenneth Corbin
A federal judge has denied Ameriprise’s attempt to dismiss a lawsuit alleging that the firm withheld reimbursement payments and wages from an advisor, allowing a class-action case that could shine an unwelcome spotlight on Wall Street’s compensation and employment practices to proceed.
Michael Saunders, who was based in Woodland Hills, California, alleges that Ameriprise extended him a forgivable loan in the form of a transition bonus intended to support his practice. Saunders claims that he used those funds for necessary business purposes such as paying his employees, as stipulated in the agreement, but then Ameriprise failed to reimburse the money.
Saunders also alleges that Ameriprise failed to pay him and other advisors wages and overtime, a claim that could bring scrutiny of the longstanding Wall Street practice of employing registered representatives as independent contractors.
His lawsuit alleges four violations of California labor and business laws, and seeks to represent a broad class of advisors who have worked for Ameriprise since November 2014.
The firm argued in a motion to dismiss the case that Saunders’ complaint was overly vague and that he failed to demonstrate specific types of bonuses he received or the terms of the arrangements.
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