According to InvestmentNews.com, Edward Jones prevailed last week in a threeyear- old contract dispute against Ameriprise Financial and former Edward Jones Adviser Cory Clem of Macomb for allegedly violating trade secrets.
A three-person arbitration panel of the Financial Industry Regulatory Authority (FINRA), a private, non-profit organization that acts as a self-regulatory watchdog over U.S. broker-dealers and registered securities brokers, announced the $4.7 million award in favor of Edward Jones. FINRA Dispute Resolution Services states, ' Awards are rendered by independent arbitrators who are chosen by the parties to issue final, binding decisions. FINRA makes available an arbitration forum--pursuant to rules approved by the SEC--but has no part in deciding the award.'
According to the decision, Ameriprise and Clem together are responsible for paying Edward Jones $1.65 million in compensatory damages and legal fees. Separately, Ameriprise is liable to pay Edward Jones $375,000 in punitive damages, while Clem must pay more than $2.7 million in compensatory damages, punitive damages and attorneys' fees.
The three-member FINRA panel denied counterclaims from both Ameriprise and Clem. The counterclaim alleged that Edward Jones filed the case to intimidate former advisers and interfere with client relationships, while Clem alleged that Edward Jones and its advisers harmed his ability to retain clients after his departure.
Edward Jones' lawsuit stems from allegations that “between approximately October 2022 and January 2023, while still an employee of [Edward Jones,] Clem – working in concert with Ameriprise – attempted to misappropriate trade secret information, solicit clients, encourage employees to leave and join Ameriprise, and open a competing business in the same town as the branch Clem was operating.' According to Broker-Check, Clem worked at Edward Jones from 2010 to 2023.
