[ by Melanie Gretchen ]

UBS AG won a request for arbritration in a proposed class-action lawsuit brought by 3 former financial advisers at a brokerage unit of the bank.  On behalf of a group of current and former financial advisers, the plaintiffs accused the Swiss bank of violating the federal Fair Labor Standards Act and California state law by not paying them overtime.

Eliot Cohen, Philip Ricasata, and Charles Shoemaker lost at the hands of U.S. District Judge Barbara Jones in Manhattan – the latest legal skirmish over contract clauses that require arbitration.  The plaintiffs argued to have their case heard publicly in court  on the grounds that their contracts conflicted with FINRA's arbitration rules that say class-action claims may not be arbitrated.

Judge Jones, however, ruled based on her finding that FINRA rules recognize that parties can enter into agreements beyond the scope of its code and do not affect enforcement of those agreements.  In addition, she rejected the plaintiffs' contention that the arbitration agreements were unenforceable.

The case: Cohen, et al., v. UBS Financial Services, Inc., et al., U.S. District Court, Southern District of New York, 12-02147.

For further details, go to [Reuters, 12/4/12].