Alliance Told To Pay Millions In Defamation Case

Law360, New York (March 29, 2007, 12:00 AM EDT) -- In another defeat for a top brokerage firm, a National Association of Securities Dealers arbitration panel has awarded $3.1 million to a former AllianceBernstein Holding broker in a defamation case stemming from a market-timing scandal.

Last Wednesday, the NASD panel handed millions to plaintiff Charles Schaffran, who had accused AllianceBernstein of ruining his reputation by laying the blame for the company’s mutual fund scandal partly at his feet.

“Respondents Alliance, Alliance Capital, and AllianceBernstein defamed claimant in public statements made on September 30, 2003 (and in...
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