JPMorgan Levels Lawsuit at $14B Merrill Team for ‘Bad-Mouthing’

When financial advisors transition from one bank to another, there is always a litigation risk. This risk can be minimized and greatly reduced by seeking proper counsel and gaining a full understanding of the restrictive covenants and duties of loyalty employment contract impose on financial services employees. A recent move that resulted in litigation was Kirk Cunningham and Todd Helfrich, who together manage close to $14 billion in assets, moving from JPMorgan to Merrill Lynch. JP Morgan has brought a suit against the former employees, claiming that the two advisors engaged in “bad-mouthing” the firm to former clients and that they allegedly violated the one-year non-solicitation clauses in their employment agreements. According to JPMorgan, the team allegedly told clients that the firm “only has junior people left to manage the client accounts,” and “forces its clients to use only its own products.” JP Morgan is seeking a temporary…

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