Former Morgan Stanley Advisors File Lawsuit First in an Effort to Avoid Temporary Restraining Order and Injunction
From the Desk of Jim Eccleston at Eccleston Law LLC:
Two San Diego advisors, who recently joined Hilltop Securities, have filed a lawsuit against their former firm, Morgan Stanley, in an attempt to avoid a temporary restraining order that their former firm may seek to prevent them from soliciting their former clients.
The lawsuit was initiated in response to several temporary restraining order lawsuits filed by the firm against other former advisors after Morgan Stanley left the Broker Protocol late last year. Morgan Stanley has argued that the lawsuits are necessary in order to protect client privacy, and the firm’s purported “trade secrets.”
The former advisors filed their own complaint in federal court in the Southern District of California requesting that the federal judge void the non-solicitation clauses in their employment contract. In their complaint, they argue that their employment contracts are “illegal,” “unconscionable” and at odds with California public policy.
In addition, the advisors note that they have had business relationships with many of their existing clients prior to their joining Morgan Stanley and that they have put significant time and effort in developing and growing their book of business.
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