J.R. Ewing hits a gusher: $11.5M arbitration award

OCT 10, 2010
Larry Hagman, the actor best known for portraying the ruthless J.R. Ewing on the 1980s hit show “Dallas,” has won an $11.5 million arbitration claim against Citigroup Global Markets Inc. The claim stemmed from unspecified securities in accounts he controlled and the purchase of a life insurance policy, according to the arbitration award. On Oct. 6, a three-member Financial Industry Regulatory Authority Inc. panel awarded Mr. Hagman, two trusts in his name and two retirement accounts in his name the following: $1.1 million in compensatory damages and $440,000 in legal fees, as well as $10 million in punitive damages to be paid to a charity of his choice. “We are disappointed and disagree with the panel's finding, and are reviewing our options,” said Citigroup spokesman Alexander Samuelson. Mr. Hagman, 79, filed the Finra arbitration claim in May 2009. As is common in such suits, he alleged breach of fiduciary duty and breach of written contract, along with fraud by misrepresentation and omission, and a failure to supervise. The three arbitrators gave no reasoning for the award but cited the Securities Industry Conference on Arbitration manual in its decision to award punitive damages. “Punitive damages are not in-tended to right a wrong but are intended to punish the wrongdoer and to deter future wrongdoing,” the citation said. “Generally, you may award punitive damages if the claimant requests it, and the respondent has engaged in serious misconduct that meets the standards for such an award.” Philip Aidikoff, Mr. Hagman's attorney in the matter, did not return calls seeking comment. Mr. Hagman's manager, Gene Yussem, said he had no comment on the decision. It's a “personal matter,” he said. E-mail Bruce Kelly at [email protected].

Latest News

MetLife poll finds high-value home sales are becoming tax-planning events
MetLife poll finds high-value home sales are becoming tax-planning events

A new MetLife survey finds real estate professionals are increasingly steering clients toward tax experts as rising property values leave more sellers facing significant capital gains.

Kestra adds Raymond James recruiter to expand advisor hiring push
Kestra adds Raymond James recruiter to expand advisor hiring push

The independent broker-dealer expands its business development bench with a new recruiter and an internal promotion in the West.

Cerity Partners names Will Peng chief innovation officer
Cerity Partners names Will Peng chief innovation officer

The leading ultra-high-net-worth RIA joins other large wealth firms, including Raymond James and LPL, in creating executive roles focused on artificial intelligence strategy

BlackRock expands Aladdin's private markets benchmarking tools
BlackRock expands Aladdin's private markets benchmarking tools

New Preqin-powered benchmarks add transparency to private equity and credit performance across BlackRock's platforms.

Fed's Bowman pushes for lighter-touch AI oversight at smaller firms
Fed's Bowman pushes for lighter-touch AI oversight at smaller firms

Supervision vice chair speaks following recent launch of AI adoption practices by regulators.

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income

SPONSORED Why direct indexing stopped being optional

Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.