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Gleacher & Company Announces Results of Hughes/Griff Arbitration

Gleacher & Company, Inc. (OTC Pink:GLCH) (the “Company”) announced today that the arbitration panel hearing the claims brought against the Company by Messrs. Thomas Hughes and John Griff, the Company’s former Chief Executive Officer and Chief Operating Officer, respectively, had rendered a decision with respect to the claims made by these former officers relating to the termination of their employment by the Company in May 2013. In accordance with the rules of the Financial Industry Regulatory Authority (“FINRA”), these claims were adjudicated by an independent arbitration panel.

The former officers had initially sought compensatory damages in an approximate amount of $7.9 million; vesting of unvested equity awards; reimbursement of legal fees; and interest on these amounts. At the hearing, Claimants requested compensatory damages in the approximate amount of $9.2 million.

The arbitration panel made the following awards:

  • $986,667 (plus interest) to Mr. Hughes
  • $295,833 (plus interest) to Mr. Griff.

The panel denied the former officers’ request for reimbursement by the Company of the former officers’ legal expenses.

In general, under applicable law, the parties have a three month period following the award to request a court to vacate the award.

About Gleacher & Company

Gleacher & Company, Inc. is incorporated under the laws of the State of Delaware.

Forward-looking statements

This press release contains “forward-looking statements.” These statements are not historical facts but instead represent the Company’s beliefs, plans or expectations regarding future events, many of which, by their nature, are inherently uncertain and outside of the Company’s control. The Company’s forward-looking statements are subject to various risks and uncertainties, including the risks and other factors identified herein and in other public disclosures made by the Company from time to time, including disclosures made on the Company’s website. As a result, the Company’s actual results may differ materially from those expressed or implied by these forward-looking statements. Forward-looking statements include, without limitation: statements regarding the dissolution and liquidation of the Company, including the Company’s plans and expectations with regard to liquidating distributions. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause our actual actions, performance or achievements to differ materially from the Company’s beliefs, plans or expectations expressed or implied by such forward-looking statements. Although the Company believes that the beliefs, plans or expectations reflected in any forward-looking statements are reasonable, it cannot guarantee future events or results. Except as may be required under federal law, the Company undertakes no obligation to update any forward-looking statements for any reason, even if new information becomes available or other events occur.