Dallas-based law firm Rogge Dunn Group filed a Financial Industry Regulatory Authority arbitration claim against Goldman Sachs, alleging that it committed age discrimination, wrongful termination and unlawful withholding of earned deferred compensation.
Don Lavi, 63, of San Francisco, was an advisor at Goldman Sachs for 20 years until the company allegedly gave him a day to either involuntarily retire or be fired.
According to the filing, Lavi managed a book of business totaling approximately $1.6 billion, including roughly $1.2 billion in assets under management.
Goldman Sachs recruited Lavi from Sanford Bernstein & Co. in 2005. According to the complaint, Lavi received positive reviews and was never placed on heightened supervision, probation or a performance-improvement plan.
The complaint alleges that Goldman presented Lavi with a “take it or leave it” ultimatum — retire immediately and sign a release of all claims or be fired in 24 hours. When Lavi requested additional time and information and complained of age discrimination, the firm terminated him days later, according to the claim. When Lavi asked HR to see the release and severance documents before making such a life-changing decision, Goldman’s HR professional refused in an email.
“In 35 years of handling FINRA and employment matters I’ve never seen an employer tell an employee they have to decide whether to accept a severance package or be fired — while refusing to provide the legal documents regarding the severance package for the employee to analyze before the employee has to make such an important, life changing decision,” Rogge Dunn of Rogge Dunn Group told The Texas Lawbook.
According to the claim, Goldman Sachs unlawfully forfeited more than $1 million in deferred compensation owed to Lavi. The filing contends that these practices violate federal law, including ERISA, as well as California labor laws governing earned wages.
Lavi is seeking more than $2 million in damages and $1 million in punitive damages.
Goldman Sachs will need to respond to the filing, and then an initial pre-hearing conference will be set.
Patrick McShan of Rogge Dunn Group is also representing Lavi.