Claims against Nationwide and one of its former executives David Giertz, has been dismissed. The parties named in the suit include Nationwide Investment Services Corporation (NISC), Nationwide Financial Services (NFS), and Nationwide Life Insurance Company (NLIC).
The suit was originally filed by plaintiff Kristen E Nieter. After the former Nationwide wholesaler claimed that she was subjected to unwelcome conduct and retaliation resulting in her termination in June of 2016.Kristin E Nieter, formerly a registered representative in Chicago, began working for Nationwide in Columbus, OH in 1998. Nieter worked for the company for 12 years. She would then leave in 2010 and return in 2013. After her termination in 2016, Nieter claimed that she was terminated without reason. This is despite admitting she violated company policies.
However, Nationwide Investment Services Corporation denied this claim and listed “failure to observe high standards of commercial honor and just and equitable principles of trade and engaging in inappropriate practices with third parties who are not affiliated with the firm” as the official reason for her termination on her U-5 form.
Nationwide has vehemently denied all allegations of wrongdoing. According to the judge’s ruling handed down in July 2017, the Franklin County, Ohio court agrees. Judge David C. Young struck down Nieter’s claim against NFS, NLIC and Giertz, finding they had no involvement in the information provided on Nieter’s post-termination U-5 form.
For those not in the securities industry, the U-5 form is a uniform termination notice for the licensed securities industry. This form must be filed with the Financial Industry Regulatory Authority (FINRA) when terminating a registered representatives license. Licensed broker-dealer firms are legally required to list a reason for termination on the form. The reason must be related to why an employee’s license is being revoked.
However, companies that are not licensed broker-dealer firms are not authorized to provide a U-5 form upon termination. As a result, NFS, NLIC, and David Giertz, are not registered broker-dealer firms, are not required to report a reason for termination on the U-5 form, the defamation claim was therefore, dismissed as to them.
For more information about Nationwide visit their website.
Read more about David Giertz on SlideShare.