Tr?id=566623520170033&ev=PageView&noscript=1

Federal Judge Reaffirms Injunctions Against Advisors Who Departed USI for Lockton

Posted on May 15th, 2023 at 11:48 AM
Federal Judge Reaffirms Injunctions Against Advisors Who Departed USI for Lockton

From the desk of Jim Eccleston at Eccleston Law 

A federal judge has upheld and expanded an injunction against several former USI financial advisors who departed for Lockton.

In February, five former USI advisors were ordered by a U.S. District Court in Tampa, Florida, to adhere to nonsolicitation and nondisclosure provisions included in their employment agreements with USI. The five former USI advisors previously filed suit against USI upon departing the firm to obtain a ruling that certain provisions in their employment agreements were illegal and unenforceable. However, the district court reaffirmed its preliminary injunction and further extended its scope to include two additional former USI employees who also departed for Lockton.

The district court refused to issue a separate injunction against Lockton. The district court determined that the advisors “were plainly predisposed to breach” their employment agreements “rather than being induced to do so by Lockton.” However, the district court noted that “Lockton certainly took advantage of the situation by hiring Simmons and Mitchell to their requested terms, knowing their planned course of conduct would violate prohibitions in their contracts with USI.”

 

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

Tags: eccleston, eccleston law

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

You are the best attorneys in the country.

CC

LATEST NEWS AND ARTICLES

1783012078 Law
July 2, 2026
Financial Services Institute Backs New Jersey Bill Protecting Independent Advisor Model

The Financial Services Institute (FSI) has urged New Jersey lawmakers to advance legislation that would help preserve the independent contractor status of financial advisors operating in the state.

1782920284 Law
July 1, 2026
Private Credit Funds Face Scrutiny Over Software Exposure Amid Investor Concerns

Private credit fund managers are facing increased scrutiny over their exposure to software companies as investors continue to pull money from the sector during ongoing market volatility.

1782836587 Law
June 30, 2026
FINRA Signals Stronger Enforcement Focus on Reg BI, Excessive Trading, and Best Execution

The Financial Industry Regulatory Authority (FINRA) plans to intensify its enforcement efforts against Regulation Best Interest (Reg BI) violations, excessive trading, options trading, churning, and best execution failures after bringing a record number of retail investor protection cases in 2025, according to ThinkAdvisor.