Stroock Employment Newsletter
“New York’s Highest Court Holds Employer Report Filed In Accordance With NASD Regulations Is Subject To Absolute Privilege In Defamation Lawsuit”
The New York State Court of Appeals settled an open question under New York law and held that statements by an employer regarding a terminated employee in a form required to be filed with the National Association of Securities Dealers (“NASD”) are entitled to an absolute privilege and may not be the basis for a defamation claim against the employer. Rosenberg v. MetLife, Inc., No. 23 (March 29, 2007).
The Court of Appeals was responding to a question certified to it by the United States Court of Appeals for the Second Circuit arising out of a lawsuit by a broker who sought to sue his former employer, an NASD member firm, for defamation, among other things, based upon statements it made in an NASD form.
Also in this issue: Overbroad Confidentiality Rule Held Unlawful Even Absent An Express Prohibition Of Protected Workplace Discussions Or Evidence Of Enforcement.