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

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
Quotes Bigger

Thank You from the bottom of our hearts for all you have done for us. When we realized this was a very bad investment - we did not know where to turn for help. Then we received your name. When we called you - you were so kind to us and then agreed to help us. For this we are so very grateful. The world would be a much nicer place if there were more people like the two of you in it. We will always remember all the help and kindness you have shown us. Thank you so very very much for everything.

Wayne and Judy S.

LATEST NEWS AND ARTICLES

1777047237 Law
April 24, 2026
Geopolitical Tensions Prompt Wealth Advisors to Rethink Dubai Strategies

Recent geopolitical developments have forced wealth advisors to reassess client exposure to Dubai, a jurisdiction that has attracted significant ultra-high-net-worth capital over the past decade.

1776963542 Law
April 23, 2026
Advisor Recruiting Surges in 2025 as Industry Movement Reaches New Highs

Advisor movement across the wealth management industry accelerated sharply in 2025, with 11,172 experienced financial advisors changing firms, according to reporting by Wealth Management citing the latest Advisor Transition Report from Diamond Consultants.

1776796402 Law
April 21, 2026
DOL Proposal on Alternative Assets in 401(k)s Faces Cautious Reception

The U.S.