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

Federal Judge Strikes Down Hightower's Non-Compete Agreement in California

Posted on March 4th, 2025 at 10:51 AM
Federal Judge Strikes Down Hightower's Non-Compete Agreement in California

From the desk of Jim Eccleston at Eccleston Law

A federal judge in Wilmington, Delaware, ruled against Hightower Advisors in its effort to enforce non-compete agreements against a former advisor in California who sold his firm to Hightower.

AdvisorHub reports that District Court Judge Richard G. Andrews barred Hightower from preventing Darren Reinig from operating a competing advisory firm. The judge found that California law invalidates non-compete agreements, undermining Hightower’s attempt to block Reinig from soliciting former clients. Reinig, who sold his practice to Hightower in 2019, launched a new advisory firm in February 2023.

However, Reinig’s legal battle is not over. Judge Andrews left the door open for Hightower to pursue claims for misappropriation of trade secrets.

According to AdvisorHub, Hightower argued that its non-compete provisions were enforceable under California law, which allows restrictions when a business has been sold. However, Judge Andrews determined that barring Reinig from working in investment advisory services nationwide was overly broad and unenforceable.

A Hightower spokesperson stated that the firm is evaluating its next steps and will continue arbitration proceedings, where it seeks a permanent injunction and damages.

 

 

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
Quotes Bigger

If you are being bothered by the Regulators, call Eccleston Law, you won't regret it.

Rick R.

LATEST NEWS AND ARTICLES

1775253477 Law
April 3, 2026
FINRA Enforcement Trends Show Higher Monetary Sanctions Despite Fewer Cases in 2025

The Financial Industry Regulatory Authority (FINRA) increased total monetary sanctions in 2025, even as the number of enforcement actions declined.

1775060885 Law
April 1, 2026
Florida FINRA Arbitration Panel Orders Charles Schwab to Pay $3.8 Million to Investors

A Financial Industry Regulatory Authority (FINRA) arbitration panel has ordered Charles Schwab & Co.

1774973592 Law
March 31, 2026
Cybersecurity Breach at Edelman Financial Engines Highlights Growing Risks for Advisory Firms

A recent cybersecurity incident involving Edelman Financial Engines has drawn attention to the increasing number of cyberattacks targeting registered investment advisers, according to Financial Advisor News.