May 17, 2023 — Maurice Wutscher attorney Brady Hermann spoke to AdvisorHub recently about a federal lawsuit filed by a small investment advisor against a larger competitor alleging claims for tortious interference with contracts and tortious interference with business relationships.
The dispute involves three advisors who allegedly breached their non-solicitation clauses and removed confidential customer information when they resigned to join the competing broker-dealer.
Mr. Hermann said the case will come down to what the competitor “knew and the communications it had with the brokers prior to and during their transitions.”
“Simply hiring new brokers is not improper and/or inducing a breach of contract,” he said.
Brady Hermann is senior counsel in the Boston and New York offices of Maurice Wutscher LLP. He regularly represents financial services companies including banks, broker-dealers, financial advisors, financial asset buyers and third party debt collectors in individual, class action and regulatory matters. He has successfully represented clients throughout the country against claims for violations of securities laws, the Fair Debt Collection Practices Act, the Telephone Consumer Protection Act, the Fair Credit Reporting Act, and various state consumer protection statutes.