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, relating to his wrongful termination. The award also includes the complete expungement of defamatory termination disclosures from Mr. Seid's regulatory record.
In a June 3, 2026, Award, a majority of a three-arbitrator FINRA panel found in favor of Mr. Seid on claims arising from his December 2024 termination by Touchstone Securities, Inc. The panel awarded $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.
Significantly, the panel 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. In its explained decision, the majority concluded that Touchstone failed to conduct an adequate investigation before terminating Mr. Seid and further found that the firm had not demonstrated that he engaged in the alleged wrongdoing. The panel ultimately concluded that Touchstone's actions toward Mr. Seid were carried out with "deliberately malicious intent."
Mr. 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 Mr. Seid after he received an offer from another firm but ultimately terminated him just days before his planned departure based on allegations he misappropriated trade secret information that the Panel determined were false and defamatory.
"The FINRA panel's decision represents a complete vindication of Steven Seid," said Laurence M. Landsman of Landsman Saldinger Carroll, PLLC, who represented Mr. 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."
The FINRA arbitration was captioned Steven Seid v. Touchstone Securities, Inc., FINRA Arbitration No. 25-00364. The Award was issued on June 3, 2026.
This case underscores the importance of thorough investigations by securities firms before taking adverse actions against employees. For financial professionals, a false termination disclosure can have long-lasting career impacts, as it appears on regulatory records accessed by potential employers. The award of punitive damages and the expungement order send a clear message that malicious or unfounded allegations will not be tolerated. Firms must ensure that termination decisions are based on solid evidence, not insufficient investigations or false claims.
