Ameriprise Financial Files Lawsuit Against LPL Financial for Improperly Handling and Misappropriating Client Data and Trade Secrets During Advisor Transitions
July 30 2024 - 12:40PM
Business Wire
Ameriprise Financial Services, LLC today filed a lawsuit in
United States District Court contending that defendant LPL
Financial LLC (LPL) is engaged in a widespread pattern and practice
of harvesting and misusing private, confidential client information
as they recruit advisors in violation of legal, regulatory and
industry obligations.
Specifically, the lawsuit alleges that LPL systematically
directs the advisors it recruits from Ameriprise and its
competitors to take confidential information on their way out the
door. These actions are in direct violation of multiple securities
laws and regulations, as well as the standards LPL is legally bound
to follow as a member of the broker protocol for recruiting.
Ameriprise further contends that LPL’s conduct abandons all
reasonable notions of client privacy rights and subjects the
advisors it recruits to regulatory and criminal exposure.
“The pattern of behavior conducted by LPL is both shocking and
concerning,” said Michael Taaffe, Partner at Shumaker, Loop &
Kendrick, LLP, outside counsel for Ameriprise. “For years, LPL has
flagrantly disregarded industry protocols in how it recruits
financial advisors – and they have obtained and mishandled trade
secrets and sensitive client data to which they are not
entitled.”
Taaffe added, “It is time for LPL to be held accountable for
their reckless disregard for clients and advisors – and the fact
that they have demonstrated zero semblance of care when handling
the personal information of thousands of unsuspecting investors who
are unaware that LPL allowed and encouraged its recruits to engage
in this misconduct.”
About Ameriprise Financial
At Ameriprise Financial, we have been helping people feel
confident about their financial future for 130 years. With
extensive investment advice, global asset management capabilities
and insurance solutions, and a nationwide network of more than
10,000 financial advisors, we have the strength and expertise to
serve the full range of individual and institutional investors'
financial needs.
Ameriprise Financial Services, LLC is an Equal Opportunity
Employer.
Investment products are not insured by the FDIC, NCUA or any
federal agency, are not deposits or obligations of, or guaranteed
by any financial institution, and involve investment risks
including possible loss of principal and fluctuation in
value.
Investment advisory products and services are made available
through Ameriprise Financial Services, LLC, a registered investment
adviser.
Securities offered by Ameriprise Financial Services, LLC. Member
FINRA and SIPC.
© 2024 Ameriprise Financial, Inc. All rights reserved.
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Alison Mueller Media Relations 612.678.7183
alison.g.mueller@ampf.com
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