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Cowen's Faithless Servant -- Surprising Outcome in FINRA Arbitration

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Oct 14, 2010 12:04 pm

Cowen's Faithless Servant -- FINRA Arbitration Panel Says Gimme a Break

Okay, so, here's the deal: Former Cowen employee sues firm in FINRA arbitration for six-figures in allegedly owed bonuses. Firm says -- no way!-- and files a cute Counterclaim alleging that its former employee was a "faithless servant" and demands repayment of compensation. Not that I'm trying to give away the outcome, but how's this for a flavor of the Arbitration Panel's decision?

[Cowen]breached the covenant of good faith and fair dealing, implied in every contract, by falling to provide Claimant an adequate opportunity to respond to the charges made against her; and by falling to conduct a fair investigation of Claimant's alleged transgressions. The Panel further finds that Respondent's "rush to judgment" had the effect of denying her the full 2007 bonus that would have been due her the very next day after her termination.