Two former advisors with UBS Wealth Management USA have signed an agreement not to solicit certain former clients to their new firm, AdvisorHub reports.
UBS had filed a lawsuit in federal court seeking a temporary restraining order against the brokers, Travis Luebbehusen and Melanie Avery, who moved to Wells Fargo Advisors in Chesterfield, Missouri last month. UBS said the two violated non-solicitation agreements they signed while employed at the firm.
In particular, UBS cited emails containing a video message that were sent after the move to Wells Fargo in which Luebbeusen said he would be contacting each former customer in coming days. Lawyers for Luebbeusen and Avery said the emails did not violate the non-solicitation agreements because they were only sent to clients who had requested them after learning the two had moved to Wells Fargo.
UBS and the two brokers signed a stipulation order last week in U.S. District in Missouri in connection with their dispute. Luebbehusen and Avery, while not admitting wrongdoing, agreed not to solicit former clients who are governed by their non-solicitation agreements. The two are still permitted to process in-bound account transfer requests and serve those who already transferred their accounts.
The temporary restraining order will remain in effect pending the outcome of an arbitration hearing before the Financial Industry Regulatory Authority in which UBS is seeking a permanent injunction and damages.
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