Commonwealth Financial and Former Edward Jones Advisors Ordered to Pay $3.5 Million in Arbitration Award

Posted on April 9th, 2025 at 10:08 AM
Commonwealth Financial and Former Edward Jones Advisors Ordered to Pay $3.5 Million in Arbitration Award

From the desk of Jim Eccleston at Eccleston Law

An arbitration panel has ordered independent broker-dealer Commonwealth Financial and a group of advisors formerly with Edward D. Jones & Co. to pay $3.5 million following a legal dispute over their departure, according to an arbitration award.

AdvisorHub reports that Edward Jones had alleged that Commonwealth and eight brokers who left in late 2022 to form Cedarwood Financial Partners in Temple, Texas, and Olean, New York, engaged in misconduct, including violations of trade secret laws, civil conspiracy, and breaches of contract and fiduciary duty. According to AdvisorHub, Edward Jones claimed the departures severely disrupted its business operations across parts of Texas and New York.

Edward Jones welcomed the decision, stating that it held the former advisors accountable for their violations and Commonwealth responsible for facilitating their wrongful actions.

AdvisorHub reports that the firm initially had sought over $16 million in damages but was awarded significantly less.

Commonwealth and the advisors denied any wrongdoing and counterclaimed that Edward Jones had disparaged them and interfered with customer relationships by providing misleading or inaccurate information to customers. The arbitration panel rejected their counterclaims.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law

Return to Archive

TESTIMONIALS

Previous
Next

I want to thank you for your excellent professional representation. It was greatly appreciated.

Michael M.

LATEST NEWS AND ARTICLES

October 13, 2025
Morgan Stanley Cuts Advisor Deferrals in 2026 Compensation Plan, Boosting Advisor Payouts

Morgan Stanley Wealth Management announced a significant change to its 2026 compensation plan, cutting advisor deferral rates by half while keeping total pay and grid structures largely unchanged.

October 10, 2025
Former Two Sigma Quant Researcher Faces Fraud Charges Over Manipulated Models

Federal prosecutors and the Securities and Exchange Commission (SEC) have filed parallel actions against Jian Wu, a former quantitative researcher at Two Sigma Investments, alleging he secretly manipulated algorithmic trading models to boost his own compensation by millions of dollars.

October 9, 2025
Former Merrill Lynch Advisors Fight Allegations of Corporate Raid

A dozen former Merrill Lynch advisors who launched their own firm, OpenArc Corporate Advisory, in Atlanta are pushing back against accusations that they orchestrated a “pre-meditated corporate raid.”