91视频下载链接

Federal Judge Strikes Down Hightower's Non-Compete Agreement in California

Posted on March 4th, 2025 at 10:51 AM
Federal Judge Strikes Down Hightower's Non-Compete Agreement in California

From the desk of Jim Eccleston at 91视频下载链接

A federal judge in Wilmington, Delaware, ruled against Hightower Advisors in its effort to enforce non-compete agreements against a former advisor in California who sold his firm to Hightower.

AdvisorHub reports that District Court Judge Richard G. Andrews barred Hightower from preventing Darren Reinig from operating a competing advisory firm. The judge found that California law invalidates non-compete agreements, undermining Hightower’s attempt to block Reinig from soliciting former clients. Reinig, who sold his practice to Hightower in 2019, launched a new advisory firm in February 2023.

However, Reinig’s legal battle is not over. Judge Andrews left the door open for Hightower to pursue claims for misappropriation of trade secrets.

According to AdvisorHub, Hightower argued that its non-compete provisions were enforceable under California law, which allows restrictions when a business has been sold. However, Judge Andrews determined that barring Reinig from working in investment advisory services nationwide was overly broad and unenforceable.

A Hightower spokesperson stated that the firm is evaluating its next steps and will continue arbitration proceedings, where it seeks a permanent injunction and damages.

 

 

91视频下载链接 LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law

Return to Archive

TESTIMONIALS

Previous
Next

I am so glad I found you! Wow! I appreciate your help, concern and guidance.

RB

LATEST NEWS AND ARTICLES

May 9, 2025
FINRA Suspends Former Wells Fargo Advisor Over Unauthorized Transfer in Elderly Client's Account

FINRA has fined and suspended former Wells Fargo financial advisor Jarrett Thomas after he executed a $50,000 transaction for an elderly client despite being informed that she was no longer capable of managing her finances.

May 8, 2025
All 50 States Now Aligned on Annuity Sales Standards

The annuity industry officially has secured uniformity in sales regulations across all 50 states.

May 7, 2025
Jury Finds Investment Advisor Liable for Failing to Disclose Annuity Commissions

A federal jury in Massachusetts has found investment adviser Jeffrey Cutter and his firm, Cutter Financial Group, liable for violating federal securities law by failing to disclose significant upfront commissions and conflicts of interest related to an annuity replacement scheme.