May, 2016 - Cosgrove Law Group, LLC filed a $30 million Arbitration claim today on behalf of our client, James E. “Jeb” Bashaw, a former Barron’s Top 100 designee. The claim is against LPL Financial and its CEO Mark Casady regarding the events surrounding Mr. Bashaw’s dismissal in September of 2014. The Statement of Claim, filed with FINRA, alleges the following: 1) LPL filed false and misleading U-5 accusations, 2) LPL failed to follow their own guidelines for compliance and supervision, 3) LPL et. al breached their fiduciary duties to Mr. Bashaw, 4) LPL et. al. tortuously interfered with Mr. Bashaw and his business relationships and prospective relationships, and 5) LPL et. al. placed Mr. Bashaw in a “false light” before the public and defamed him.
“The pillaging of Mr. Bashaw’s business and destruction of his reputation have already imposed damages upon him in excess of $10 million. The impact of the loss of clients, employees, colleagues, references and public esteem will carry out over the balance of his career. Coupled with punitive damages, his current damage calculation exceeds $30 million” reads the statement of claim as filed by his attorney, David B. Cosgrove, the former Missouri Securities Commissioner. David has been representing financial advisors around the nation in business interference and defamation matters since he left the government in 2006.
The claim also outlines several instances where LPL knowingly and repeatedly failed to follow their own procedures, practices and guidelines ‘…including the malicious and unprecedented attack on Bashaw by an LPL Spokeswoman that reiterated LPL’s false and misleading accusations to media outlets.
In addition to $30 million in damages, the statement of claim asks that LPL disgorge the revenue it obtained by its campaign of misconduct, that his U-5 filing be expunged and “…a curative letter sent to all of the clients who received its October 3, 2014 letter falsely accusing him of misconduct and fishing for complaints.” Until a FINRA arbitration panel rules upon this matter, Mr. Bashaw’s claims are only allegations.