Waddell & Reed
Waddell & Reed Ordered to Pay Customer $55,000
An NASD arbitration panel ordered Waddell & Reed to pay an investor $55,000 to compensate the investor for damages suffered as a result of Waddell & Reed’s improper conduct. The investor asserted the following causes of action: breach of contract; mismanagement of accounts; lack of diversification; violations of common law principles, “prudent man principles”, and ERISA standards; misrepresentation; breach of fiduciary duty; negligence; failure to supervise; violations of Federal and State Statutory and Common Law; violations of the Securities Act of 1933, the Exchange Act of 1934, and Rule 10b-5 promulgated thereunder; fraud; and unsuitability. Claimants’ claim involved a variety of Eaton Vance mutual funds.