BGC Partners Issues Statement On FINRA Arbitration Panel

(RTTNews) - The Financial Industry Regulatory Authority or FINRA Arbitration Panel in the matter involving Tullett Prebon Plc.(TLPR.L), BGC and certain others has issued its award, BGC Partners Inc.(BGCP) said in a statement.

Tullett was found to have breached its contract with the people who sold it Chapdelaine Corporate Securities & Co (many of whom now work for BGC) and is ordered to pay them over $6 million in damages. Tullett has also been found to have wrongly refused to pay expenses to one of its employees, who was awarded over $222,000.

BGC was found solely liable for approximately $13 million. Certain desk heads that moved to BGC have been found liable for a total of approximately $20 million. BGC expects the awards against these desk heads will be paid for by BGC. Tullett's Management Reports show it has paid over $40 million in attorneys' fees in this matter and a related New Jersey matter over the last two years.

"Tullett has spent more than it recovered, which was a waste of resources," said Sean Windeatt, Chief Operating Officer of BGC Partners Inc.

Tullett's final position claimed over $214 million in damages, and in earlier positions Tullett had claimed over a billion dollars. It also sought punitive damages and findings against BGC executives, all of which were denied. In a separate FINRA judgment last year, Tullett's claim of $16 million in damages against BGC was denied and Tullett was ordered to pay $380,000 to a group of brokers in that matter.

BGC stated that the FINRA award will not have a material financial effect on BGC, which had appropriately reserved for it.