Tr?id=566623520170033&ev=PageView&noscript=1

ÍøÆØ³Ô¹Ï

Goldman's Aggressive Legal Tactics to Enforce Non-Solicitation Agreements Before Creative Planning Sale

Posted on October 23rd, 2023 at 1:25 PM
Goldman's Aggressive Legal Tactics to Enforce Non-Solicitation Agreements Before Creative Planning Sale

From the desk of Jim Eccleston at Ecclesoton Law 

Two former Goldman Sachs Personal Financial Management advisors based in California have filed a lawsuit challenging the enforceability of their employment agreements following their departures.

The lawsuit specifically targets the non-compete clauses in the agreements, which would restrict the advisors from participating in the industry for six months after leaving Goldman Sachs in September. Additionally, it addresses clauses that prohibit them from soliciting their former customers. This legal action comes just before Goldman Sachs completes the sale of the unit in its fourth quarter to Creative Planning.

Corderman and Kohrmann claim these clauses violate California state laws supporting employee choice. The lawsuit also requests the court to compel Goldman to surrender any profits obtained from enforcing the challenged contractual terms, in addition to attorney fees, costs, and interest. In their complaint, the advisors assert that the non-compete clauses unlawfully restrict them from participating in significant segments of the financial industry and violate California law, which prohibits employers from inhibiting employees from engaging in a lawful profession. The advisors argue that a provision mandating arbitration of their dispute violates California state law. They argue this because they were required, without negotiation options, to sign employment agreements to secure their jobs and the mandatory arbitration provisions were non-negotiable.

According to FinancialPlainning.com, Peter Mallouk, CEO and majority owner of Creative Planning, intends to actively enforce the terms of employment agreements signed by advisors during their tenure at Goldman Sachs or its predecessor, United Capital.

 

ÍøÆØ³Ô¹Ï LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

Fantastic news!!!!  Your professionalism, support and expertise were greatly appreciated.  You made a difficult situation much more bearable.

Marci M.

LATEST NEWS AND ARTICLES

1778171646 Law
May 7, 2026
FINRA Bars Former Raymond James Broker for Refusing Testimony in Unauthorized Trading Probe

A former registered representative with Raymond James has been barred from the securities industry after refusing to cooperate with a Financial Industry Regulatory Authority (FINRA) investigation into alleged unauthorized trading activity.

1778084309 Law
May 6, 2026
FINRA Outlines Key Rulemaking Priorities and Recent Developments in Quarterly Agenda

The Financial Industry Regulatory Authority (FINRA) recently released its Quarterly Regulatory Policy Agenda, offering a detailed view of its rulemaking priorities, pending proposals, and recently approved regulatory changes.

1778000603 Law
May 5, 2026
Commonwealth Financial Network Resolves SEC Conflict of Interest Case

Commonwealth Financial Network has agreed to pay $5 million to resolve a long-standing conflict of interest case brought by the Securities and Exchange Commission, according to reporting by ThinkAdvisor.