There are new developments this month in Fragasso v. Rydex. Judge Douglas Woodlock
has issued a stay on the Finra arbitration proceedings begun by Rydex
and also ruled to allow discovery to begin in the case.
"The judge has now ruled in my favor on every substantiative motion," Phil Fragasso
told the MFWire
. A spokeswoman for Rydex declined to comment.
In ruling issued on Friday May 9th, the judge granted an emergency motion to stay the Finra hearings, filed by Fragasso's legal team. That same day, Rydex's legal team filed an opposition to that order, asking that the judge stay the civil court proceedings pending the completion of the Finra arbitration.
Discovery in the case is also set to move forward, Fragasso told the MFWire
that Rydex has until May 21 to turn over papers pertinent to the case.
Fragasso is suing Rydex over a promise made by CEO Carl Verbencouer
to give him an extra 30,000 "Executive Participation Units" for signing a non-compete agreement in June of 2006, 20,000 of which would be rewarded by June 2007 and the additional 10,000 in June of 2008.
Fragasso claims that Verbencoeur told him that if Rydex was sold before these milestones were reached, he would "do the right thing" and accelerate the award. That was not done. The case has been winding its way through the court system since August of 2007.
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