Hudson Sues Amroc Over Contract Dispute

  • 15 Apr 2001
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Tom Hudson, the former Goldman Sachs trader who sued the firm after he was let go, is suing another former employer for breach of contract and is seeking payment of money he claims he is owed on trades pending when he was let go. Hudson is suing Amroc Investments, where he worked until February, according to Hudson's attorney Bill Roth of Kelly & Roth. As first reported on LMW's Web site last Wednesday, the case was filed April 4 in the Supreme Court of the State of New York and Hudson is seeking more than $1 million for breach of contract and an estimated $25 million for damages arising from Amroc's "libel, defamation and willful disparagement" of his career, according to the claim.

Marc Lasry, head of Amroc, confirmed that Hudson had been let go but said he could not comment on the reasons. Lasry would not comment on any of the allegations made in the claim. "Tom's actions and record speak for themselves," he said.

Hudson says he was abruptly informed of his termination on Feb. 9. "They brought me into an office and said they were happy with my work, but they were firing me because I made too much money," he explained in a telephone interview. "Then they told the employees that I'd resigned to pursue an existing lawsuit [against Goldman Sachs], which was not true. Now if I go to an employer looking for a job, they're going to ask, 'Why did you leave?'"

Hudson maintains that he is contractually owed commission on trades that were open at the time of his termination. Lasry vehemently denies this. While he says he is owed money, Hudson maintains, "To me it's more important that the truth gets out. If it was a small amount of money, it would make no sense to pursue this. But there's significant money involved," he said.

Market players, while not commenting on Hudson's case specifically, said that disputes of this kind usually are settled in arbitration. "Every case is different, based on the contract," said a dealer.

Hudson says he tried to work with the company. "I gave them several weeks to pay me what they owed me. I did everything professionally, but they didn't leave me any alternatives but to pursue a case," he said.

According to the claim, Hudson's reputation in the securities and bank debt trading industries has been "irrevocably hurt." The claim reads that Amroc "consciously and willfully ruined Hudson's opportunities for future employment" by terminating him in the manner it did.

The claim states that Hudson had reached a stage in his career where he was "widely known in financial circles as being among the most successful traders of bank loans ­ if not the most successful trader" and said that Amroc has "profoundly ended Hudson's career prospects by falsely characterizing" his departure as a voluntary decision to pursue his case against Goldman Sachs. That firm let Hudson go in 1999 after he admitted to having an extramarital affair with a colleague. A judge threw out the case, but Hudson is appealing, said Roth.

Hudson, who is unemployed, says he actively looking for work in the same field. While there are no offers so far, Hudson is hopeful that he can stay in the bank debt market. "I am optimistic, but I've been substantially damaged," he said. "I've been in this business for eight years, so it would make sense to stay in my field of expertise."

  • 15 Apr 2001

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1 Bank of America Merrill Lynch (BAML) 7,026 25 11.95
2 Citi 6,449 21 10.96
3 BNP Paribas 5,093 18 8.66
4 Barclays 4,040 11 6.87
5 Lloyds Bank 3,615 14 6.15

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4 Wells Fargo Securities 942.61 3 8.24%
5 Mizuho 875.48 2 7.65%