Employment Contracts

Ex-Employees Sued in Client Disputes

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A California investment-advice firm has sued former sales people and two companies that hired them, claiming they used proprietary information to steal clients.

Fisher Investments claims the employees violated contracts by taking client contact information to new jobs, the Wall Street Journal (sub. req.) reports. The employees respond that the company is harassing them.

Lawsuits filed in California state court claim Morgan Stanley and Wachovia Securities used the confidential information to solicit clients. Morgan Stanley told the newspaper the allegations are without merit.

In 2004 a federal judge in Chicago refused to place a restraining order on one former salesman, saying parts of his employment contract appeared to be unenforceable. The suit later settled.

Another former employee, Thomas Casper, is suing the company for libel, claiming it sent letters to clients questioning whether he is trustworthy.

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