Ameriprise Financial Services Files Lawsuit In U.S. District Court Contending That Defendant LPL Financial 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.

Author: Benzinga Newsdesk | July 30, 2024 12:49pm

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.

Posted In: AMP LPLA