Morgan Stanley Seeks Injunction Against Former Advisor for Soliciting Clients
From the desk of Jim Eccleston at Eccleston Law
Morgan Stanley has taken legal action against Gregory T. Chevrier to prevent him from contacting his former clients. AdvisorHub reports that the complaint aims to enforce a succession agreement Chevrier signed with a retiring advisor.
Chevrier, who joined Wells Fargo in February, oversaw significant client assets at Morgan Stanley. However, a non-solicitation clause in an agreement with the widow of his former partner, Walter J. Grubbs, restricted his ability to reach out to these clients.
The succession agreement stipulated that Grubbs' widow continues to receive a percentage of revenue from client accounts for up to five years, provided they remain at Morgan Stanley.
Since joining Wells Fargo, allegations in the court complaint suggest that Chevrier has aggressively solicited Morgan Stanley clients, offered enticing fee structures, and allegedly made disparaging remarks about his former firm. AdvisorHub also reports that Morgan Stanley refuted these claims and asserted that Chevrier's actions violated his legal obligations.
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