A FINRA arbitration panel has awarded former Touchstone Securities executive Steven Seid nearly $1.2 million in damages, including punitive damages, after finding that the firm wrongfully terminated him with "deliberately malicious intent." The panel also ordered the complete expungement of defamatory termination disclosures from Mr. Seid's regulatory record, a significant remedy for financial professionals whose careers can be damaged by inaccurate filings.
The award, issued on June 3, 2026, by a majority of a three-arbitrator panel in the case Steven Seid v. Touchstone Securities, Inc. (FINRA Arbitration No. 25-00364), includes $838,216 in compensatory damages for wrongful termination and tortious interference resulting in the loss of deferred compensation, $256,000 in lost compensation associated with Mr. Seid's employment opportunity with T. Rowe Price, $100,000 in punitive damages, and reimbursement of FINRA filing fees. The panel also denied all counterclaims asserted by Touchstone Securities.
In its explained decision, the majority concluded that Touchstone failed to conduct an adequate investigation before terminating Mr. Seid and found that the firm had not demonstrated that he engaged in the alleged wrongdoing. The panel determined that Touchstone's actions were carried out with "deliberately malicious intent."
Mr. Seid had devoted approximately fifteen years to Touchstone and its affiliated organizations, rising from management trainee to senior executive. According to the award, Touchstone initially sought to retain Mr. Seid after he received an offer from another firm but ultimately terminated him just days before his planned departure based on allegations that he misappropriated trade secret information—allegations the panel determined were false and defamatory.
The panel also recommended the complete expungement of Mr. Seid's termination disclosures from his Form U5, directed that the reason for termination be changed to "Voluntary," and recommended the removal of all references to the underlying disclosure events from his CRD record.
"The securities industry depends upon accurate regulatory disclosures," said Laurence M. Landsman of Landsman Saldinger Carroll, PLLC, who represented Mr. Seid throughout the arbitration. "When a firm publishes false or misleading termination allegations, the consequences for a financial professional can be devastating. We are pleased that the panel carefully examined the evidence and reached the right result."
Landsman noted that the decision represents a complete vindication of Mr. Seid, as the panel rejected all of Touchstone's allegations, dismissed every counterclaim, awarded substantial damages, and assessed punitive damages for deliberate malicious intent. The firm highlighted that the outcome underscores the importance of thorough investigations by employers before taking adverse actions against employees.
