LONDON, March 18 (Reuters) - British interdealer broker Tullett Prebon won a court case against rival BGC Partners on Thursday after claiming BGC poached its employees unlawfully.
The court ruling highlights legal difficulties brokers face when trying to get whole teams of traders to move.
'It won't stop poaching, but it provides a reminder that those doing the recruiting have legal risks,' said Peter Frost, global head of employment at law firm Herbert Smith.
Tullett Prebon, which last week said it was in takeover talks, went to London's High Court over the way its 'crown jewels' -- its brokers -- were recruited by BGC Partners.
BGC said last August it hired 52 brokers from Tullett, prompting its rival to file a claim against it seeking $500 million. New York-based BGC said the staff included brokers in corporate bonds, U.S. Treasuries and mortgage-backed securities.
Tullett claimed a strategy co-ordinated by BGC President Shaun Lynn and its former global chief operating officer Anthony Verrier used sham constructive dismissal claims to deliver Tullett employees to BGC earlier than they would have been entitled to under their Tullett contracts.
In his ruling on liability, the judge said Tullett's claims against BGC, Lynn and Verrier for conspiracy and inducing breach of contract succeeded, the Press Association reported.
Tullett said in a statement the judge granted further injunctions and it also had the right to claim damages.
Tullett's shares were 2.5 pence up at 364.1 pence by 1330 GMT.
BGC Partners was not immediately available to comment.
Inter-dealer brokers act as middle-men in the financial markets executing trades between banks in bonds, derivatives and other securities.
(Steve Slater and Jane Merriman; Editing by Rupert Winchester) Keywords: TULLETT/COURT (steve.slater@reuters.com; +44 207 542 4367; Reuters Messaging: steve.slater.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The court ruling highlights legal difficulties brokers face when trying to get whole teams of traders to move.
'It won't stop poaching, but it provides a reminder that those doing the recruiting have legal risks,' said Peter Frost, global head of employment at law firm Herbert Smith.
Tullett Prebon, which last week said it was in takeover talks, went to London's High Court over the way its 'crown jewels' -- its brokers -- were recruited by BGC Partners.
BGC said last August it hired 52 brokers from Tullett, prompting its rival to file a claim against it seeking $500 million. New York-based BGC said the staff included brokers in corporate bonds, U.S. Treasuries and mortgage-backed securities.
Tullett claimed a strategy co-ordinated by BGC President Shaun Lynn and its former global chief operating officer Anthony Verrier used sham constructive dismissal claims to deliver Tullett employees to BGC earlier than they would have been entitled to under their Tullett contracts.
In his ruling on liability, the judge said Tullett's claims against BGC, Lynn and Verrier for conspiracy and inducing breach of contract succeeded, the Press Association reported.
Tullett said in a statement the judge granted further injunctions and it also had the right to claim damages.
Tullett's shares were 2.5 pence up at 364.1 pence by 1330 GMT.
BGC Partners was not immediately available to comment.
Inter-dealer brokers act as middle-men in the financial markets executing trades between banks in bonds, derivatives and other securities.
(Steve Slater and Jane Merriman; Editing by Rupert Winchester) Keywords: TULLETT/COURT (steve.slater@reuters.com; +44 207 542 4367; Reuters Messaging: steve.slater.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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