B. Riley Financial subsidiary Wunderlich Securities was ordered by a three-person Financial Industry Regulatory Authority Office of Dispute Resolution panel to pay a total of $11.4 million to New York-based investment firm Dominick & Dickerman and one of its executives after what FINRA said was the first arbitration award involving a virtual hearing, conducted via Zoom.
Attorneys representing Dominick & Dickerman and Michael John Campbell, a managing director at the firm, had claimed Wunderlich was guilty of common law fraud, negligent misrepresentation, violation of Section 10(b) of the Securities Exchange Act of 1934, breach of contract and violation of FINRA Rule 2010 (governing standards of commercial honor and principles of trade), FINRA said.
The dispute arose after Wunderlich bought Dominick & Dickerman's wealth management business in 2015, but specifics were not cited in the award, which was posted on FINRA's website April 7.