A legal dispute between J.P. Morgan and Cresset Asset Management, a Chicago-based registered investment advisory firm, has ended in a settlement, according to Advisor Hub.
In a lawsuit filed last May, J.P. Morgan claimed Cresset co-chairman Douglas P. Regan recruited at least 10 private bankers from J.P. Morgan after he departed the firm in 2017. His alleged actions violated non-compete clauses in his employment agreements with J.P. Morgan, the suit claimed. At an arbitration hearing, J.P. Morgan said the firm had lost tens of millions dollars in client assets and revenue amounting to over $75,000 as a result.
Last week, J.P. Morgan Securities said it had agreed in a stipulation with Cresset to dismiss its claims with prejudice. The settlement was reached in U.S. District Court in Northern Illinois and the case was closed. Both sides will be responsible for their own costs and attorneys fees.
After joining J.P. Morgan in 2012, Regan left in May 2017 to join Cresset, an RIA he had helped form two months earlier. J.P. Morgan claimed Cresset conducted an “impermissible raid” in its efforts to recruit former J.P. Morgan employees to the new firm.
Spokespeople for J.P. Morgan and Cresset acknowledged that the case had been dismissed but did not comment on the settlement’s terms.
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