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 towards him, briefly.
Within the determination, 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 determination, Decide Squires-Lee mentioned 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 together 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 atypical competitors,” the order learn.
A Hightower spokesperson mentioned the agency doesn’t touch upon pending litigation.
Frank sued Hightower and LWM final month, looking for a brief injunction so he might contemplate transferring to new employment whereas bringing his shoppers with him. In response to Frank’s grievance, Hightower tried phasing Frank out of working together 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; a lot of these shoppers stayed on board when Hightower acquired LWM, not caring concerning the namesake agency “so long as Glenn is behind it,” in accordance with the unique grievance.
In 2016, he lower his hours whereas retaining his title and obligations, however Frank claimed LWM started altering his function to “member emeritus” with out consulting him. Quickly Frank misplaced the prospect to have the ultimate say about his shopper accounts.
In response to Frank’s grievance, this strain 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 task subordinate to that of the youthful advisors, he can be faraway from his shoppers’ service groups fully.”
Frank even alleged Hightower falsely advised shoppers he was unavailable or vacationing and moved to chop his pay and hours, telling Frank it will be as much as “youthful advisors” when and the way he might 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. In response to his grievance, he’s unable to convey his present shoppers with him if he leaves because of the non-solicitation settlement.
In her determination, Squires-Lee mentioned the general public would additionally profit from permitting Frank’s long-time prospects to go along with him.
“Some could depart Hightower / LWM to work with Frank. Some could not,” she wrote. “The selection, particularly given the size of their relationship with Frank, must be theirs to make.”
