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While Hightower has withdrawn its Illinois claims, the firm continues to pursue its case against Knudsen through binding arbitration.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

You were most helpful with my FINRA deposition. You are a good lawyer and a good person.

Dan B.

LATEST NEWS AND ARTICLES

December 22, 2025
FINRA Overhauls Arbitration Rules to Rebalance Arbitrator Selection and Codify Forum Practices

The Financial Industry Regulatory Authority (FINRA) has approved significant amendments to its Codes of Arbitration Procedure designed to rebalance public arbitrator selection, increase transparency, and formalize several long-standing practices in the arbitration forum.

December 19, 2025
Industry Groups Press Senate at Advance Financial Exploitation Prevention Act

Several industry associations are urging the U.S. Senate to pass the Financial Exploitation Prevention Act, legislation that would allow mutual fund companies and their transfer agents to delay redemptions when they reasonably suspect elder financial abuse.

December 18, 2025
UBS Warns of Rising Default Risk in Private Credit

A UBS report signals that credit stress likely will intensify next year as borrowers confront inflation, elevated interest costs, and softening consumer conditions.