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While Hightower has withdrawn its Illinois claims, the firm continues to pursue its case against Knudsen through binding arbitration.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

 


It was really fun seeing you fight for us. You have an amazing way of thinking out of the box.


 

Beth M.

LATEST NEWS AND ARTICLES

1776353258 Law
April 16, 2026
Former Financial Advisor Pleads Guilty to $10 Million Fraud Scheme Targeting Elderly Client

A former financial advisor has pleaded guilty to wire fraud after orchestrating a scheme that stole nearly $10 million from an elderly client, according to reporting by Financial Advisor News.

1776286541 Law
April 15, 2026
Court Issues Split Ruling in Edelman Advisor Dispute

A federal court in Delaware has delivered a mixed decision in a dispute between Edelman Financial Engines and Prime Capital Financial, underscoring the legal limits of restrictive covenants in the advisory space.

1776182162 Law
April 14, 2026
FINRA Seeks Public Comment on Potential Overhaul of Arbitration Rules

The Financial Industry Regulatory Authority (FINRA) has issued Regulatory Notice 26-06, requesting public comments on proposed changes to its arbitration framework.