By Kenneth Corbin

LPL Financial is celebrating a win in one recruiting dispute against rival Ameriprise while playing down a setback in another case. A federal court in Arizona this week denied Ameriprise's request for a temporary restraining order against three former advisors who joined LPL and, Ameriprise alleges, improperly solicited their former clients and took reams of confidential information with them.

That case follows numerous others that Ameriprise has brought against LPL involving departing advisors. LPL described these cases as a "deeply misguided" campaign of "serial litigation." Ameriprise has brought eight cases against LPL relating to its recruiting practices, according to LPL.

The case now heads to an arbitration panel to be convened by brokerage industry self-regulator Finra.

"We look forward to presenting the overwhelming evidence to a panel of experienced Finra arbitrators," an Ameriprise spokeswoman says. "Importantly, we've prevailed in several other cases pertaining to the egregious recruiting practices by LPL and its advisors that put clients' privacy at risk."

For its part, LPL says it is "thrilled" with this week's ruling denying Ameriprise's request for the restraining order in the Arizona case.

"It is evident from the ruling that the court saw through the baseless claims brought by Ameriprise and that their attempts to strip independence from advisors by claiming ownership of their books were denied," the firm says.

Another case. In a case being litigated in Washington, a federal judge on Tuesday upheld an injunction against LPL and a former Ameriprise advisor following a Finra panel's finding that Ameriprise was likely to succeed in the case. Finra arbitrators will now make a final determination in that case, but as a preliminary matter they upheld the injunction, finding that the advisor improperly solicited his clients and took confidential information as he was leaving Ameriprise.

LPL played down the significance of the court's latest action in that case, saying the ruling was in keeping with the court's earlier decision to grant Ameriprise a temporary restraining order against LPL and the advisor, Douglas Kenoyer.

"This decision was expected," an LPL spokeswoman says. "It was consistent with the court's previous ruling from October and, like the court, made no findings against LPL."

Ameriprise sees it differently. The court's ruling "further validates Ameriprise's claims that LPL's recruitment practices put client information as well as advisors at risk," a spokeswoman says.

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February 27, 2025 15:01 ET (20:01 GMT)

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