The Legal Battle Between JPMorgan and Former Advisor Henry Robert Gleckler IV
A former JPMorgan advisor, Henry Robert Gleckler IV, has found himself in the midst of a legal dispute with his former employer after leaving to join Morgan Stanley. JPMorgan filed a lawsuit in New York’s Supreme Court alleging that Gleckler violated nonsolicitation and data privacy agreements by attempting to bring his former clients over to Morgan Stanley using proprietary account information.
The lawsuit sought a temporary restraining order against Gleckler, requiring him to abide by the terms of his nonsolicitation agreement, which prohibits him from soliciting his old clients for a year after his departure. Gleckler agreed to the terms of the restraining order, signaling his willingness to comply with the agreement.
Gleckler’s lawyer, Jonathan Thau, clarified that Gleckler did not admit to any liability or wrongdoing. Despite the legal battle, Gleckler’s former clients are still free to move their assets to him at Morgan Stanley.
Agreement to Arbitration
By accepting the restraining order, Gleckler’s case will now be resolved through arbitration administered by the Financial Industry Regulatory Association (FINRA). The terms of the restraining order require Gleckler to refrain from soliciting any clients he became acquainted with during his time at JPMorgan and to return any proprietary data he may have in his possession.
JPMorgan’s Legal Actions Against Former Advisors
Gleckler is not the only former JPMorgan private client advisor facing legal action for allegedly violating nonsolicitation agreements. Other advisors, including Matthew Madera, Brandon M. Love, Laura Sullivan, and Matthew McCrea, have also been sued by JPMorgan for similar reasons.
The crux of JPMorgan’s argument lies in the nature of client relationships developed by private client advisors. The firm contends that these advisors receive the majority of their client referrals through JPMorgan’s bank, making their ownership of client books less substantial compared to other advisors.
In Gleckler’s case, JPMorgan claims that he managed to move a portion of his client base to Morgan Stanley, breaching various agreements in the process. The lawsuit accuses Gleckler of breach of contract, misappropriation of trade secrets, breach of fiduciary duty, and other violations.
Conclusion
The legal battle between JPMorgan and former advisor Henry Robert Gleckler IV highlights the complexities of client relationships in the financial industry. As the case moves to arbitration, the outcome will ultimately determine the extent of Gleckler’s obligations to his former employer and clients.
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