Broker-dealer found grossly negligent for employees’ Ponzi scheme operated out of its offices.

A group of investors alleged causes of action, including breach of fiduciary duty and respondeat superior, against the broker-dealer for its failure to supervise four of its employees who operated a Ponzi scheme out of the broker-dealer’s office in Atlanta, Georgia. The panel found the respondent grossly negligent and awarded the claimants approximately $14 million in damages, including $6.9 million in punitive damages. The claimants also successfully petitioned a court of competent jurisdiction for attorney fees and costs.

_{Case Law Alerts, 3rd Quarter, July 2023 is prepared by Marshall Dennehey to provide information on recent developments of interest to our readers. This publication is not intended to provide legal advice for a specific situation or to create an attorney-client relationship. Copyright © 2023 Marshall Dennehey, all rights reserved. This article may not be reprinted without the express written permission of our firm.}