Merrill Lynch has filed a motion to dismiss a class action lawsuit brought by former broker Kelly D. Milligan, who alleges the firm illegally withheld $500,000 in deferred compensation when he left to join Sanctuary Wealth in 2021. Milligan argues the deferred pay falls under the Employee Retirement Income Security Act (ERISA), but Merrill contends that it is part of a “bonus program” exempt from ERISA’s anti-forfeiture rules.
Ajamie LLP filed this case on behalf of Milligan, challenging the industry practice where brokerage firms withhold compensation from brokers who leave to join competitors. Our firm previously secured a $79 million settlement in a similar claim against Wells Fargo.
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