Edward Jones’ Effort to Restrain Ameriprise Advisor Results in $762k Arbitration Loss

Posted on November 12th, 2021 at 1:43 PM
Edward Jones’ Effort to Restrain Ameriprise Advisor Results in $762k Arbitration Loss

From the Desk of Jim Eccleston at Eccleston Law:

Edward D. Jones & Co.’s bid to restrict a former advisor from bringing his clients to his new firm has resulted in a substantial arbitration loss. 

A Financial Industry Regulatory Authority (FINRA) arbitration panel denied Edward Jones’ breach of contract and trade secret claims and ordered the firm to pay $562,000 in damages and attorney fees to Michael Peterson. Peterson, who had moved to Ameriprise Financial, filed a counterclaim alleging unfair competition, a “civil conspiracy”, and tortious interference with business relations, according to the award. The FINRA arbitration panel also ordered Edward Jones to pay $1 in damages and $200,794 in attorney fees to Ameriprise. 

After Peterson joined Ameriprise in October 2019, a federal court granted Edward Jones’ request for a temporary restraining order (TRO), which prohibited Peterson from soliciting his former clients. Throughout federal court and FINRA proceedings, Peterson continually denied allegations that he misappropriated trade secrets or breached restrictive covenants contained in his employment agreement with Edward Jones. Prior to departing Edward Jones, Peterson managed nearly $101 million in client assets and generated at least $750,000 in annual revenue, according to Ameriprise.  

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

 

Tags: eccleston, eccleston law, edward jones, ameriprise, finra

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