J.P. Morgan Settles With Cresset Over ‘Raid’ Of Private Bankers

Posted on February 10th, 2022 at 2:20 PM
J.P. Morgan Settles With Cresset Over ‘Raid’ Of Private Bankers

From the Desk of Jim Eccleston at Eccleston Law:

J.P. Morgan settled a lawsuit with Chicago-based advisory firm Cresset Asset Management pertaining to its alleged raid of at least 10 J.P. Morgan private bankers. 

J.P. Morgan agreed in a stipulation with Cresset to dismiss with prejudice its claims while both parties will cover their respective costs and attorneys’ fees, according to the court filing. In May 2021, J.P. Morgan alleged that Cresset co-chairman and former Midwest regional head for J.P. Morgan’s private bank, Douglas Regan, improperly solicited private bankers to join him after his departure from J.P. Morgan in 2017. According to J.P. Morgan, Regan’s conduct violated non-compete clauses and resulted in the “loss of tens of millions of dollars in client assets and substantial revenue well in excess of $75,000.” 

Cresset was the only defendant named in the case while Regan, the sole respondent in the arbitration claim, previously informed AdvisorHub that J.P. Morgan’s claims were “without merit.” J.P. Morgan additionally alleged that Cresset specifically emphasized the hiring of former J.P. Morgan employees, which constituted an “impermissible raid” of its private bank. After joining J.P. Morgan in August 2012, Regan voluntarily terminated his employment to depart for Cresset in May 2017. 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory, disciplinary and transition matters.

Tags: eccleston, eccleston law, jp morgan, raid

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