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

Hightower Drops Claims Against Former Advisor Amid Non-Compete Dispute

Posted on November 20th, 2024 at 3:58 PM
Hightower Drops Claims Against Former Advisor Amid Non-Compete Dispute

Hightower, a Chicago-based RIA firm, recently dropped its lawsuit against former advisor Lars Knudsen just days before a federal judge in Illinois was set to rule on the firm’s injunction request. According to WealthManagement, Hightower sued Knudsen in March, alleging that Knudsen violated non-compete agreements following his termination. The firm claimed his dismissal was due to policy breaches, including allegedly bringing a firearm into the office. Knudsen countersued in Washington, accusing Hightower of coercing advisors into restrictive contracts and misrepresenting his professional conduct.

Knudsen, who led Triad Wealth Management before joining Hightower in 2014, argued that the firm pushed him out to secure his clients’ assets, fostering what he described as a “toxic corporate culture.” He contended that the company’s leadership and recently added advisors sought to reshape the culture of his Belleview office, pressuring him to retire and allegedly making derogatory remarks to clients to facilitate his exit. Knudsen's attorney characterized Hightower's actions as a “disinformation campaign” against him.

Hightower, however, asserted that Knudsen misappropriated firm earnings and directed over $225,000 in client fees for personal use. The firm also alleged that Knudsen repeatedly brought a loaded firearm into the office, once placing it on the table during a termination meeting with an employee. Knudsen refuted these allegations, stating that he accidentally brought his firearm to the office once, immediately returned it to his vehicle upon realizing the mistake.

While Hightower has withdrawn its Illinois claims, the firm continues to pursue its case against Knudsen through binding arbitration. Meanwhile, Knudsen has filed a separate lawsuit against four Hightower Bellevue principals, alleging that they diverted firm funds to deny him owed compensation. Hightower has refrained from commenting on the ongoing litigation, stating only that it intends to continue pursuing its claims in arbitration.

 

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

I learned two important things working with Eccleston Law. First, I made a friend and ally with Jim and Steph for life. Secondly, and this is a crucial life lesson - if you need counsel, then seek out the very best. Jim was referred to me by a most trusted source. I've never had to hire an attorney for anything. Now, I know the value of hiring an important partner. Meticulous, thorough and detailed in preparation is the best way to describe Jim. Brilliant too, I might add. Bottom line, I would highly highly recommend Jim and Stephany for your legal needs. One of the best life decisions I've ever made.

Howard S.

LATEST NEWS AND ARTICLES

1787679428 Law
August 25, 2026
Ameriprise Broker Sues LPL-Affiliated Practice Over Use of "Kindred" Name

AdvisorHub reports that an Ameriprise Financial broker in Oklahoma has filed a trademark infringement lawsuit against an LPL Financial-affiliated practice over its use of the word "kindred" in its name.

1787592120 Law
August 24, 2026
Sophisticated Voice Phishing Attacks Target Major Wall Street Firms

According to ThinkAdvisor, hackers recently launched a series of sophisticated cyberattacks against major Wall Street firms, including prominent hedge funds and private equity companies.

1787342003 Law
August 21, 2026
Rising Market Leverage Raises Concerns About Financial Stability Despite Low Volatility

The leverage that has helped drive the U.S.