https://www.startribune.com/ex-wealth-managers-took-rich-clients-worth-700-million-us-bank-alleges-in-lawsuit/601342959
But I'm sure more layoffs will make up for it!
19 replies (most recent on top)
PWM Minnesota leadership is a disaster, when will they stop blaming people that leave and look in the mirror. Today, three more top end professionals resigned together as a team. Exact same thing that happened in April that led to the infamous lawsuit that the bank is losing. The 8th floor at Nicollet Mall is a dumpster fire led by mo--ns. Can’t wait to see who leaves next. Signed, desperately looking for new employment.
I am a current employee in PWM and we heard all kinds of boastful stuff from management when this was filed, but shocking that we haven’t heard boo from management now that they lost. I haven’t spoke with the three of them since they left, but they are good people who were smart enough to leave. More have left since and I am sure more will be leaving soon.
I just read the judges response to the TRO and USB complaint in this case. (Filed in June, but can be found online) Looks to me like USB lost in almost every way except the “disparaging” comments portion by Frederickson. Interesting comments about deleting phone contacts which was commented on in earlier posts. Also, the finding on “announcements” should be interesting for other advisors under similar agreements. I’m not a legal expert, but it looks like this case is becoming a road map for any current USB advisor that wants to leave, contact clients, have clients follow them, and not break their agreement. USB may have to strengthen their agreements if they don’t want this to set precedent.
@ qp+1jt6y3c2j
I guarantee I went to a better college than you and make more money. So stfu smarty
@qj+1jt6y3c2j
If you're going to use those words in a sentence, then you should be able to differentiate their aggregate meaning from the meaning of the word "illegal".
You guys are dense. It’s a breach of fiduciary duty of confidentiality and loyalty by using client lists, investment positions and fee structure to divert clients to another organization after resigning. Get your finger out nose and read up on some case law
If you have a big client and your main contact is John Doe, you can easily look up that person on LinkedIn or other methods once you leave the Bank without using any Bank systems or contact information.
@jt+1jt6y3c2j
You are clearly not a customer facing employee. I have plenty of customer contacts in my personal cell phone. That's how I return their calls when I'm out of the office. Please explain exactly which laws I am breaking. I think you just don't have any idea what you are talking about.
Love that! :)
@pe+1jt6y3c2j Adult? I do not think that word means what you think it means.
Use your words like an adult. Don’t be mad at me because you are miserable
Illegal? I do not think that word means what you think it means.
There’s a lot of misconception about these non compete agreements. Let’s wait to see what comes out in discovery
These guys were still employed by USB, and negotiating employment contracts with RBC contingent on bringing customers over. That’s bad faith and definitely illegal to leverage inside information of clients (that they would otherwise not be privy to) for that purpose. BTW - it is illegal to save or keep customer contact information on personal devices, regardless if you are a current or ex employee. Also, it’s deeper than soliciting customers. I wouldn’t be surprised if RBC settles and terminates the ex USB employees.
The FTC banned non-compete agreements last year, but a federal court blocked the ban, so they are in a kind of legal limbo. Enforcement of these agreements has always been a challenge, and companies that try to enforce them run the reputational risk of looking like heavy-handed bullies that are afraid of competition. They also run the risk of an individual enforcement action by the FTC. This is a bad look for USB.
U.S. Bank is losing business? Color me shocked!
"Another client told U.S. Bank’s investigators Frederickson made “disparaging comments” about the business to persuade the client to move to RBC, the lawsuit alleges."
Maybe the clients got tired of this dump, for some of the same reasons that the workers did. The "disparaging comments" might just be the worker explaining some of the problems at the bank.
It seems to me that the exodus from us bank is organic.
🍿
It is comical that USB is trying to claim contact information is confidential. Phone numbers and email addresses of clients you’ve worked with for decades aren’t confidential proprietary data owned by USB. That’s a ludicrous claim. Maybe if UsB actually paid for performance and tested their employees well they wouldn’t have left. I’m glad to see they stuck it to GK and USB.
Another lawsuit?