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KT Law Files $5 Million Deferred Compensation Claim Against Merrill Lynch for ERISA Violations

1. KlaymanToskes filed a claim against Merrill Lynch for $5M in losses. 2. Allegations include unlawful withholding of compensation under ERISA guidelines. 3. Numerous advisors face financial losses from Merrill's deferred compensation rules.

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Why Bearish?

Negative legal claims against Merrill Lynch can harm BAC's reputation and finances, similar to past litigations affecting stock prices.

How important is it?

The lawsuit could lead to financial penalties for BAC, impacting investor sentiment significantly.

Why Short Term?

Immediate legal issues may prompt investors to sell BAC stock due to perceived risks.

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BACMERRKLYT
Merrill Advisors with Losses Over $100,000 Should Contact KlaymanToskes Immediately National investment loss and securities attorneys KlaymanToskes announces the filing of a FINRA arbitration claim (Case No. 24-00542) against Merrill Lynch, a division of Bank of America (NYSE:BAC), on behalf of a former financial advisor seeking to recover up to $5,000,000 in deferred compensation and other damages. All former Merrill brokers/advisors who have suffered deferred compensation losses in excess of $100,000 are encouraged to contact KlaymanToskes immediately at 888-997-9956.KlaymanToskes reports that the law firm is continuing to file FINRA arbitration claims against Merrill Lynch on behalf of financial advisors impacted by the firm's "Cancellation Rule", which wrongfully withholds deferred compensation earned under Merrill's Deferral Plan and WealthChoice Plan. The law firm is currently representing numerous former Merrill financial advisors around the nation who suffered significant financial losses due to Merrill's alleged violations of ERISA's vesting and anti-forfeiture provisionsThe latest FINRA arbitration claim filed by KlaymanToskes (Case No. 24-00542) was filed on behalf of a former Merrill Lynch financial advisor who is seeking to recover up to $5,000,000 in damages. The claim alleges that Merrill Lynch unlawfully withheld the advisor's deferred compensation after his departure, in violation of ERISA's anti-forfeiture provisions and vesting requirements. Additionally, the advisor suffered significant financial harm due to Merrill Lynch's alleged defamatory conduct, which resulted in the loss of $60 million in client assets that failed to transfer to the advisor's new firm.KlaymanToskes' investigation found that Merrill's deferred compensation programs meet the criteria of ERISA-regulated employee benefit plans, as they involve systematic deferral of income for periods extending beyond employment termination. By enforcing its "Cancellation Rule" and imposing vesting periods of five to eight years, Merrill Lynch is alleged to have breached ERISA's strict vesting rules, which require employee contributions to fully vest when earned.Additionally, the claim outlines Merrill Lynch's compensation grid changes, which financially penalized the advisor for acting in his clients' best interests, such as reducing risk and recommending cash investments amid rising interest rates. The grid structure created a conflict of interest by prioritizing firm profits over client outcomes, placing the advisor in a difficult position, and exacerbating harm to both the client and the advisor.If you are a former Merrill financial advisor or other securities industry professional facing an employment dispute, contact attorney Lawrence L. Klayman at (888) 997-9956 or by email at [email protected] in furtherance of our investigation.About KlaymanToskesKlaymanToskes is a leading national securities law firm co-founded by former securities broker Lawrence L. Klayman, which practices exclusively in the field of securities arbitration and litigation on behalf of both investors and financial industry professionals throughout the world in large and complex securities matters. The firm has recovered over $250 million in FINRA arbitrations and over $350 million in other securities litigation matters. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.ContactLawrence L. Klayman, Esq.KlaymanToskes, P.A.+1 888-997-9956[email protected]SOURCE: KlaymanToskes, P.A.

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