2 former UBS advisors agree to order banning solicitation of ex-clients

On Behalf of | Apr 6, 2022 | Firm Transition

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.

Transitioning employment in the financial services industry requires counsel that can evaluate any potential legal implications so you can properly manage risk and focus on transitioning your clients. If ignored, these risks can turn a simple transition into contested litigation with significant consequences. Obtaining counsel from a qualified attorney should thus be part of any transition. Lewitas Hyman offers comprehensive and sophisticated counsel to clients nationwide, originating from years of advising financial firms and registered representatives on firm transitions. For more information, contact Lewitas Hyman at (312) 291-4600 or through our online contact form for a free consultation. 

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