BGC Announces That Broker Hiring Claims By Tullett Have Been Completely Denied
In A FINRA Arbitration
NEW YORK, Jan. 14, 2013
NEW YORK, Jan. 14, 2013 /PRNewswire/ -- BGC Financial, L.P. ("BGC"), an entity
of BGC Partners, Inc. (BGCP:NASDAQ), is pleased to announce that claims in
excess of $16 million brought by Tullett Prebon Financial Services LLC and
Tullett Prebon Americas Corp. ("Tullett") against BGC have been denied in
their entiretyin a FINRA arbitration.
(Logo: http://photos.prnewswire.com/prnh/20110720/MM38935LOGO )
Tullett's claims were brought against BGC and nine brokers who resigned from
Tullett and joined BGC in 2011. In addition to losing all claims for damages
against BGC, Tullett was ordered to pay a total of approximately $380,000 owed
to the nine brokers who joined BGC.
Tullett claimed that BGC "raided" Tullett's U.S. repo desk, that the desk head
breached his contract with Tullett, and that the other brokers breached duties
to Tullett. Tullett also accused BGC of unfair competition, misappropriating
confidential information, and violating the FINRA Rules of Conduct. In
Tullett's Statement of Claim, it demanded compensatory damages from BGC,
punitive damages, a permanent injunction barring BGC from recruiting or hiring
any Tullett employees in the future, and a referral to the SEC. Tullett also
sought to recover compensation that it had paid to the desk head, as well as
compensation that BGC paid to hire the nine repo brokers.
All Tullett's claims were denied in full, affirming that BGC's recruitment and
employment of the repo brokers was lawful and appropriate.
The arbitration is one of a number of lawsuits filed by Tullett, all making
similar allegations, claiming that BGC improperly recruited or "raided"
employees from Tullett in the U.S. in the 2009-2011 time period. This is the
first of the matters to be adjudicated.
About BGC Partners, Inc.
BGC Partners is a leading global brokerage company primarily servicing the
wholesale financial and real estate markets. Products include fixed income
securities, interest rate swaps, foreign exchange, equities, equity
derivatives, credit derivatives, commercial real estate, commodities, futures,
and structured products. BGC also provides a wide range of services, including
trade execution, broker-dealer services, clearing, processing, information,
and other back-office services to a broad range of financial and non-financial
institutions. Through its eSpeed, BGC Trader, and BGC Market Data brands, BGC
offers financial technology solutions, market data, and analytics related to
select financial instruments and markets. Through the Newmark Grubb Knight
Frank brand, the Company offers a wide range of services including leasing and
corporate advisory, investment sales and financial services, consulting,
project and development management, and property and facilities management.
BGC's customers include many of the world's largest banks, broker-dealers,
investment banks, trading firms, hedge funds, governments, corporations,
property owners, real estate developers, and investment firms. For more
information, please visit www.bgcpartners.com.
eSpeed, BGC, BGC Trader, Grubb & Ellis, Grubb and Newmark are trademarks and
service marks of BGC Partners, Inc. and its affiliates. Knight Frank is a
service mark of Knight Frank Limited Corp., used with permission.
Discussion of Forward-Looking Statements by BGC Partners
Statements in this press release regarding BGC Partners' business that are not
historical facts are "forward-looking statements" that involve risks and
uncertainties. For a discussion of additional risks and uncertainties, which
could cause actual results to differ from those contained in the
forward-looking statements, see BGC Partners' Securities and Exchange
Commission (SEC) filings, including, but not limited to, the risk factors set
forth in our public filings, including our most recent Form 10-K and any
updates to such risk factors contained in subsequent Form 10-Q or Form 8-K
SOURCE BGC Financial, L.P.
Contact: Media: Robert Hubbell, +1-212-294-7820, or Hannah Sloane,
+1-212-294-7938, or Investors: Jason McGruder, +1-212-829-4988, or Ben
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