Panel Orders Raymond James to Pay $762K in Penny Stock Case
Jo Ann Bennett, Janice B. Bowman, Elaine C. Crampton, et al.
Raymond James Financial Services, Inc., as Successor and Beneficial Owner of Morgan Keegan & Company and Logan Burch Phillips
Nature of Dispute: Customers vs. Member Firms
Overview of Allegations: The claimants allege that their registered representative at Morgan Keegan Company, which Raymond James Financial purchased in 2012, placed their retirement assets in unsuitable investments, including variable annuities and penny stocks, at significant costs to them.
Logan Burch Phillips, as branch manager at Morgan Keegan & Company, LLC, approved or directed their Financial Advisor’s misdeeds and failed to protect the assets of Claimants.
Damages Requested: The claimants requested $2,423,119.00 in compensatory damages, $3,825,990.00 in punitive damages, $2,499.643.60 in attorneys’ fees, and $25,484.97 in costs.
Result: An arbitration panel determined that Raymond James is liable for $762,000, including $327,000 in compensatory damages, $200,000 in punitive damages, attorneys’ fees of $211,000 and costs of $24,000.