Waddell & Reed Financial has found itself at the wrong end of a $27.6 million NASD artibration judgement. The firm was harshly criticized for intentionally slandering the reputation of Steven Sawtelle, a former representative, who was fired immediately after testifying to the Security and Exchange Commission regarding another Waddell & Reed employee. Waddell & Reed is planning to appeal the decision.

The NASD panel found: ‘the firm demonstrated reprehensible conduct that warrants an award of punitive damages.’

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