A Massachusetts-based advisor who’s suing Hightower for age discrimination gained a small victory final month, with a state court docket prohibiting the agency from imposing non-solicitation covenants in opposition to him, briefly.
Within the choice, Decide Debra Squires-Lee dominated in favor of Glenn Frank, a 69-year-old advisor who was folded into Hightower after it purchased Lexington Wealth Administration in 2019.
Frank alleged his superiors at Hightower had labored to “compel” his retirement. Within the choice, Decide Squires-Lee stated the potential hurt to Frank’s profession could possibly be “significantly egregious” if the covenants continued to be enforced.
“The hurt to Frank from being unable to speak along with his long-time shoppers or solicit or work with different prospects with whom he by no means labored or communicated with throughout his time at LWM far outweighs any hurt to Hightower from bizarre competitors,” the order learn.
A Hightower spokesperson stated the agency doesn’t touch upon pending litigation.
Frank sued Hightower and LWM final month, looking for a brief injunction so he may take into account transferring to new employment whereas bringing his shoppers with him. Based on Frank’s grievance, Hightower tried phasing Frank out of working along with his shoppers to profit youthful advisors on the agency, saying it was important to its long-term well being.
Frank joined LWM from Wells Fargo in 2010, bringing about 50 shoppers with him; lots of these shoppers stayed on board when Hightower acquired LWM, not caring in regards to the namesake agency “so long as Glenn is behind it,” in keeping with the unique grievance.
In 2016, he minimize his hours whereas conserving his title and duties, however Frank claimed LWM started altering his function to “member emeritus” with out consulting him. Quickly Frank misplaced the possibility to have the ultimate say about his shopper accounts.
Based on Frank’s grievance, this stress continued as soon as Hightower purchased the agency.
In 2021, supervisors eliminated Frank from the agency’s Funding Committee with out telling him or his shoppers, and he was advised that if he “didn’t take a job subordinate to that of the youthful advisors, he can be faraway from his shoppers’ service groups utterly.”
Frank even alleged Hightower falsely advised shoppers he was unavailable or vacationing and moved to chop his pay and hours, telling Frank it could be as much as “youthful advisors” when and the way he may work together with shoppers. He filed a grievance with Hightower’s HR division alleging age discrimination, however Frank claimed it went nowhere.
The identical day, Frank knowledgeable Hightower that he deliberate to file a grievance with the Massachusetts Fee Towards Discrimination, and the agency suspended him, purportedly due to an e-mail he had despatched to shoppers.
The suspension has since ended, however as of now, Frank stays at Hightower. Based on his grievance, he’s unable to convey his current shoppers with him if he leaves because of the non-solicitation settlement.
In her choice, Squires-Lee stated the general public would additionally profit from permitting Frank’s long-time prospects to go together with him.
“Some might depart Hightower / LWM to work with Frank. Some might not,” she wrote. “The selection, particularly given the size of their relationship with Frank, ought to be theirs to make.”