Stockbrokers' Commission Pay Suit Survives Dismissal Bid

Law360, Washington (December 18, 2012, 12:19 PM EST) -- A New York state judge refused Friday to toss stockbrokers' putative class action against financial services company Clark Dodge & Co. alleging its commission-based compensation system is illegal, saying the company can't force the dispute into arbitration.

Although Clark Dodge claimed it had signed U4 agreements with the two former brokers, Deric Menga and Wilfred Ignace, that required the parties arbitrate all disputes before the Financial Industry Regulatory Authority Inc., Judge Eileen Bransten said the group's rules precluded class actions from arbitration.

According to the judge's...
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