Goldman's Aggressive Legal Tactics to Enforce Non-Solicitation Agreements Before Creative Planning Sale

Posted on October 23rd, 2023 at 1:25 PM
Goldman's Aggressive Legal Tactics to Enforce Non-Solicitation Agreements Before Creative Planning Sale

From the desk of Jim Eccleston at Ecclesoton Law 

Two former Goldman Sachs Personal Financial Management advisors based in California have filed a lawsuit challenging the enforceability of their employment agreements following their departures.

The lawsuit specifically targets the non-compete clauses in the agreements, which would restrict the advisors from participating in the industry for six months after leaving Goldman Sachs in September. Additionally, it addresses clauses that prohibit them from soliciting their former customers. This legal action comes just before Goldman Sachs completes the sale of the unit in its fourth quarter to Creative Planning.

Corderman and Kohrmann claim these clauses violate California state laws supporting employee choice. The lawsuit also requests the court to compel Goldman to surrender any profits obtained from enforcing the challenged contractual terms, in addition to attorney fees, costs, and interest. In their complaint, the advisors assert that the non-compete clauses unlawfully restrict them from participating in significant segments of the financial industry and violate California law, which prohibits employers from inhibiting employees from engaging in a lawful profession. The advisors argue that a provision mandating arbitration of their dispute violates California state law. They argue this because they were required, without negotiation options, to sign employment agreements to secure their jobs and the mandatory arbitration provisions were non-negotiable.

According to FinancialPlainning.com, Peter Mallouk, CEO and majority owner of Creative Planning, intends to actively enforce the terms of employment agreements signed by advisors during their tenure at Goldman Sachs or its predecessor, United Capital.

 

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

If the regulators are after you, and are trying to make a case against you, and you are going to contest their allegations against you, make sure you have the best securities industry defense lawyers, Eccleston Law Firm. My case was spun into a combination of penalties including fines, cash settlements, CE courses and suspension. They were the best I have seen in action. When all was said and done, they had done their magic, my situation was negotiated and settled with a simple "letter of caution" and a case closed without action. It is the most important legal business decision you will ever make, make it Eccleston Law.

Rick R.

LATEST NEWS AND ARTICLES

February 4, 2026
Investor Redemptions Rise in Nontraded BDCs Amid Credit Concerns

Financial advisors and their clients have increased redemptions from nontraded business development companies (BDCs) following a series of high-profile corporate bankruptcies, according to InvestmentNews. The surge highlights growing investor concern about liquidity and credit exposure within these high-yield but often risky investment ...

February 3, 2026
FINRA Accuses Spartan Capital of Widespread Churning That Allegedly Harmed Customers

The Financial Industry Regulatory Authority (FINRA) has brought a disciplinary complaint against Spartan Capital Securities and several senior leaders of the New York City–based broker-dealer, alleging that the firm facilitated excessive trading that generated millions of dollars in revenue while causing substantial losses to customers.

February 2, 2026
California Investors Allege Unsuitable DST Recommendations in FINRA Arbitration

Two investors from the San Francisco Bay Area have filed a FINRA arbitration claim against brokerage firm Realized Financial and its financial advisors.