Merrill Lynch’s ‘Corporate Raid’ Case Stayed for Arbitration

Merrill Lynch will have to go through arbitration in its case alleging Dynasty Financial Partners LLC, Charles Schwab & Co., and a team of former investment advisers poached the firm’s staff and confidential information to create a $129 billion rival brokerage.

Arbitration before the Financial Industry Regulatory Authority is the appropriate venue for the dispute to move forward, Judge Victoria M. Calvert of the US District Court for the Northern District of Georgia said in a Wednesday order denying Merrill Lynch’s motion for a temporary restraining order.

Calvert stayed the case until the arbitration process is complete.

The dispute between ...