LPL Accuses Ameriprise of “Chasing Headlines” In Response to Latest SuitLPL Accuses Ameriprise of “Chasing Headlines” In Response to Latest Suit
Ameriprise sued the IBD and several former employees last week, claiming the reps who left solicited clients and took confidential information, violating the Protocol for Broker Recruiting.
Several days after Ameriprise accused LPL Financial of aiding several departing advisors in stealing purportedly confidential client information, the independent broker/dealer is firing back in court.
In a court filing late last week, LPL argued that Ameriprise’s suit against the firm and advisors Jared Roskelley, Kyle Robertson and Matthew Tinyo is frivolous and is the latest in Ameriprise’s “serial litigation” attempts to stem the tide of advisors departing for LPL. Despite protestations of acting in good faith, LPL argued that Ameriprise isn’t trying to avoid the courts.
“Ameriprise is chasing headlines, not a genuine resolution of purported legal issues,” LPL’s response read.
The legal tug-of-war started last week when Ameriprise requested a temporary restraining order against Roskelley, Tinyo and Robertson, who resigned from Ameriprise on Jan. 27.
According to Ameriprise, the three reps violated the Protocol for Broker Recruiting, which is designed to clarify client information advisors can take when changing jobs (and reduce the number of lawsuits filed between firms in the aftermath). Both Ameriprise and LPL are signatories of the Protocol.
However, Ameriprise argued that the three departing reps printed 8,887 documents over two days containing confidential client information and pre-solicited Ameriprise customers in violation of the Protocol. The firm said it had photographic and video evidence of the defendants leaving Ameriprise offices with banker’s boxes, client packages, and heavy backpacks presumably filled with the printed documents.
“Roskelley, Tinyo and Robertson have openly acted in plain violation of these contractual agreements,” the complaint read. “Moreover, Roskelley, Tinyo and Robertson are engaging in such misconduct with the knowledge and support of LPL, whose regular pattern and practice is to encourage recruits to violate their contractual agreements.”
However, in its filing from Friday afternoon, LPL argued that these alleged actions by the reps occurred while they were still under Ameriprise’s supervision. While LPL said it doesn’t supply incoming advisors with in-house legal advice, it claimed to notify incoming reps they can only retain client information allowable under the Protocol.
The IBD also took issue with Ameriprise’s claims of ownership of certain customer information and the firm’s opting to work out these alleged lapses in the courts rather than contacting LPL’s own Protocol contact when they occur.
“Rather, it appears eager to sue its own departing advisors and attempts to tag LPL with liability based on alleged conduct by the advisor that occurred while they were under Ameriprise’s supervision,” the LPL filing read. “Advisors are taking notice of Ameriprise’s bad-faith attempt to deprive them of their customers and then sue them on their way out.”
"These advisors clearly violated the Protocol for Broker Recruiting as well as other industry standards and rules,” said an Ameriprise spokeswoman, in a statement. “They misappropriated sensitive client data, pre-solicited clients and stole trade secrets. We look forward to proving our claims in court."
The scuffle over the trio’s departure is the latest in several lawsuits filed by Ameriprise against LPL, accusing the firm (and former employees) of similar actions.
In one case, Ameriprise accused Washington-based former employee Douglas Kenoyer of breaching his contract when he left to join LPL by illegally soliciting clients and taking client information.
However, Kenoyer called the suit against him the “latest salvo in an economic war” Ameriprise was waging against LPL and former employees. An LPL spokesperson argued that Ameriprise was “increasingly desperate” to stop competition from LPL and was “abusing the courts” to do so.
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