Hightower Fails To Stop Former Advisor From Establishing Competing Business

Posted on March 6th, 2023 at 3:03 PM

From the Desk of Jim Eccleston at Eccleston Law

A former Alabama-based Hightower advisor has prevailed in court after the firm attempted to stop the advisor from establishing a competing firm. 

A Delaware court determined that Hightower’s five-year non-compete was “likely void” under an Alabama law prohibiting restrictions that are overly broad, according to a court order. The Alabama-based advisor, John Gibson, signed the five-year non-compete when he sold his business to Hightower in 2019. The court further determined that the public’s interest in having the ability to access their advisor’s expertise at his new firm, BrightHaven Capital Management, outweighed Hightower’s contention that Gibson was excluded from Alabama’s non-compete ban under an exemption. 

However, losing the injunction does not restrict Hightower from continuing to pursue damages. The court ruling relates to the current public policy debates disfavoring non-compete clauses. Gibson, who oversaw $1.5 billion in assets, allegedly already has transferred $3.3 million worth of client accounts to Brighthaven, according to Hightower. 

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

That is just fantastic! Thank you very much!

Julie N.

LATEST NEWS AND ARTICLES

February 19, 2026
Wall Street Journal Analysis Questions Investor Gains Following DuPont's Decade-Long Breakup

A Wall Street Journal analysis has raised questions about investor returns following DuPont’s multi-year corporate restructuring, which divided the historic conglomerate into multiple independent companies.

February 18, 2026
American Portfolios Ordered to Pay $4.6 Million in Restitution Over Cash Sweep Program Disclosures

The Financial Industry Regulatory Authority (FINRA) has ordered American Portfolios Financial Services to return $4.6 million to customers and pay monetary sanctions after determining that the firm overcharged investors and failed to properly disclose how it generated revenue through a cash sweep program.

February 17, 2026
FINRA Fines Kingswood Capital Partners $150,000 for Supervisory Failures in GWG L Bond Sales

The Financial Industry Regulatory Authority (FINRA) censured and fined San Diego–based broker-dealer Kingswood Capital Partners $150,000 after finding supervisory failures tied to sales of high-risk GWG L bonds.