Landsman Saldinger Carroll, PLLC announced that Partner Laurence M. Landsman secured a significant FINRA arbitration award for former Touchstone Securities executive Steven Seid, totaling nearly $1.2 million in damages, including punitive damages, for wrongful termination. The June 3, 2026 Award also granted complete expungement of defamatory termination disclosures from Seid's regulatory record.
The FINRA panel found in favor of Seid on claims arising from his December 2024 termination by Touchstone Securities, Inc. The award included $838,216 in compensatory damages for wrongful termination and tortious interference resulting in loss of deferred compensation, $256,000 in lost compensation associated with 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.
Significantly, the panel recommended complete expungement of Seid's termination disclosures from his Form U5, directed that the reason for termination be changed to "Voluntary," and recommended removal of all references to the underlying disclosure events from his CRD record. In its explained decision, the majority concluded that Touchstone failed to conduct an adequate investigation before terminating Seid and found that the firm had not demonstrated he engaged in the alleged wrongdoing. The panel concluded that Touchstone's actions were carried out with "deliberately malicious intent."
Seid 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 Seid after he received an offer from another firm but ultimately terminated him days before his planned departure based on false allegations of misappropriating trade secret information.
"The FINRA panel's decision represents a complete vindication of Steven Seid," said Laurence M. Landsman of Landsman Saldinger Carroll, PLLC, who represented Seid throughout the arbitration. "After a full evidentiary hearing, the panel rejected Touchstone's allegations, dismissed every counterclaim, awarded substantial damages, assessed punitive damages for 'deliberate malicious intent,' and ordered the removal of the defamatory disclosures that had threatened Steven's reputation and career."
"The securities industry depends upon accurate regulatory disclosures. 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 added.
The case, Steven Seid v. Touchstone Securities, Inc., FINRA Arbitration No. 25-00364, underscores the importance of thorough investigations before termination and the severe repercussions for firms that act with malicious intent. The award of punitive damages and the expungement order highlight the panel's strong stance against defamatory practices in the securities industry.
Landsman Saldinger Carroll, PLLC represents financial advisors, registered representatives, executives, and investors in FINRA arbitrations, employment disputes, expungement proceedings, and securities-related litigation nationwide. The firm's success in this case demonstrates its commitment to protecting the rights of securities professionals against wrongful termination and defamation.
