(October 2 – 15:40 ET) – Dain Rauscher Corp., the Minneapolis-based brokerage firm purchased last week by Royal Bank, has just settled a multimillion dollar broker-raiding case.
As part of the settlement, Dain Rauscher has paid Stockwalk.com Group Inc. US$13.3 million. In December 1999, a National Association of Securities Dealers arbitration panel had awarded a rival brokerage firm, John G. Kinnard and Co., which has since become part of Stockwalk, US$16.6 million. Dain Rauscher took a charge for that amount at that time, although with interest the award has grown to US$17.2 million. The settlement came after Dain Rauscher lost an appeal of the award.
The charge will be reflected in Dain Rauscher’s third quarter net income.
“We are happy to put this case behind us and settle it amicably,” said Ron Tschetter, president of Dain Rauscher’s private client group.
“We think this was the appropriate action to take at this time,” said Eldon C. Miller, chairman and CEO of Stockwalk.com Group, Inc. “We have an excellent relationship with Dain and are happy we have been able to reach this agreement.”
-IE Staff