UBS Loses Lawsuit After Former Employee Calls Firm Immoral and Unethical

source: - author: Bill Singer

UBS Loses Lawsuit After Former Employee Calls Firm Immoral and Unethical


In Statements of Claim filed in July 2011, Claimant UBS asserted breach of contract; common count for money lent; common count for account stated; and unjust enrichment concerning separate November 2008 promissory notes. Claimant UBS sought against Respondent Kirwan and Respondent Meninger, $300,407.85 and $185,287.19, respectively, in compensatory damages plus interest, costs, attorneys’ fees, and other fees. In the Matter of the FINRA Arbitration Between UBS Financial Services Inc., Claimant/Counter-Respondent vs. James P. Kirwan, Respondent/Counter-Claimant – AND – Joanne M. Meninger, Claimant/Counter-Respondent (FINRA Consolidated Case Number; 11-02752 (consolidated with –02753), April 4, 2013).

SIDE BAR: On May 2, 2012, Respondent Kirwan and Respondent Meninger filed a Motion to Consolidate FINRA Arbitrations 11-02752 and 11-02753; following opposition from UBS, the FINRA Arbitration Panel granted the motion on June 20, 2012.

Counterclaimant Kirwan sought

  • $300,000 in damages for “introductory letters not going out;”
  • $720,00 for the “sum of UBS’ alleged illegal malfeasance;”and
  • $1,000,000.00 for reputation damage and personal suffering resulting from “three years of constant stress for working at an allegedly immoral, unethical company.”

Counterclaimant Meninger sought $90,000 in unpaid compensation.

At the close of the hearing, Counterclaimants Kirwan and Meninger requested $1,260,000.00 as an offset for damages.


The FINRA Arbitration Panel denied UBS’s claims against both respondents; and the Panel found UBS liable and ordered it to pay to Respondent Kirwan and Respondent Meninger $250,000 in compensatory damages.

Bill Singer’s Comment

Ouch!  UBS comes a gunnin’ for the two former employees to the tune of about $486,000 but  walks away filled with some $250,000 in  buckshot — that’s almost three-quarters of a million bucks between what the brokerage firm sought and what it wound up paying. I know that Respondent Meninger asserted that UBS had caused him three years of constant stress but, I dunno, if you ask me, I think UBS walked away from this hearing with a massive case of acid reflux.

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