RIA EverNest Files Lawsuit to Sever Ties with Sanctuary Wealth Following FINRA Fine
From the desk of Jim Eccleston at Eccleston Law
EverNest Financial Advisors, a Carmel, Indiana-based registered investment adviser, has filed a lawsuit seeking to reverse a deal where it sold a 20 percent stake to Sanctuary Wealth almost two years ago.
As reported by AdvisorHub, EverNest is asking the court to issue a judgment allowing it to buy back the stake at a discount and "decouple" from the relationship, citing Sanctuary's alleged failure to abide by the terms of the deal. The RIA claims Sanctuary's refusal to move forward and its resulting delays are unjustified. Sanctuary's stake is valued at $735,000, and EverNest aims to repurchase it for $588,000.
According to AdvisorHub, the triggering event occurred when the Financial Industry Regulatory Authority (FINRA) censured and fined Sanctuary Securities, leading to the alleged breach of the parties’ agreement. Sanctuary Securities had been censured and fined by FINRA for failing to disclose material information to investors. The lawsuit also seeks damages and legal costs.
Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.
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