Investment Banker Wins Arbitration Battle with Barclays

PRNewswire Outten & Golden LLP
October 18, 2010

A 20-year investment banker, who alleged Barclays used the collapse of former employer Lehman Brothers to seek to renege on a compensation agreement, has prevailed in arbitration proceedings against the London-based banking enterprise.

A Financial Industry Regulatory Authority (FINRA) arbitration panel ordered Barclays Capital Inc. to pay $715,000, plus interest, FINRA filing fees, and other costs, according to Outten & Golden LLP, counsel for Thomas D. Whalen, who filed the claim.

Attorney Laurence S. Moy, of Outten & Golden, who tried the case with Juno Turner, also of the firm, said, Mr. Whalen was recruited to Lehman in 2006 to build and lead its healthcare investment banking group, and Mr. Whalen succeeded. His group exceeded its revenue goal for 2007 and successfully competed for several major underwriting transactions scheduled for 2008 and 2009. ”

Mr. Whalen alleged that Barclays, through its words and conduct including a general commitment in its asset purchase agreement with Lehman to pay bonuses to legacy Lehman employees for services provided in 2008 impliedly agreed to pay Mr. Whalen a bonus. After working all of 2008 and transitioning his book of business to Barclays, the firm told Mr. Whalen in early 2009 that it would not pay him any bonus.

Mr. Moy, co-head of Outten & Golden’s Securities and Financial Services Industry practice group, added, Barclays, like many securities firms, argued the bonus was completely “discretionary,’ but the arbitrators clearly saw the case for what it was: an attempt by Barclays to ignore its obligations. Mr. Whalen honored his part of the deal and expected Barclays to do the same. ”

The case is Thomas D. Whalen vs. Barclays Capital Inc. and Barclays Bank PLC, ” FINRA Dispute Resolution Arbitration No. 09-03587.

Attorney Contacts: Laurence S. Moy and Juno Turner, Outten & Golden LLP, New York, 212.245.1000