McFadden suit on hold pending arbitration ruling
Darren McFadden’s federal lawsuit against Ameriprise Financial Services was put on hold Thursday until the case can be arbitrated before the Financial Industry Regulatory Authority.
U.S. District Judge James Moody Jr. signed an order at the request of both parties staying the case and compelling arbitration. The parties filed a joint statement last month saying arbitration may be required as a result of an arbitration agreement the parties signed years ago.
Ameriprise pointed out the existence of the agreement, which requires the parties to try to resolve the case first out of court, after McFadden sued the company May 12.
McFadden is a Dallas Cowboys running back and a former Arkansas Razorback. The lawsuit is one of three he has pending in federal court in Little Rock concerning the management of his finances beginning in 2008, just before he was drafted, at age 20, to a six-year, $60.1 million contract with the Oakland Raiders.
The suit alleges that Ameriprise, which employed McFadden’s former financial adviser, Michael Vick of Little Rock, allowed Vick to take advantage of the young football star.
McFadden has filed separate lawsuits against Vick and Vick’s sister and brother-in-law.
He alleges Vick deceived him and transferred some illegally obtained assets of McFadden’s to the couple.
Vick has denied the allegations.