A Massachusetts-based advisor who’s suing Hightower for age discrimination received a small victory final month, with a state court docket prohibiting the agency from implementing non-solicitation covenants in opposition to him, quickly.
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 mentioned the potential hurt to Frank’s profession might 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 clients with whom he by no means labored or communicated with throughout his time at LWM far outweighs any hurt to Hightower from odd competitors,” the order learn.
A Hightower spokesperson mentioned the agency doesn’t touch upon pending litigation.
Frank sued Hightower and LWM final month, in search of a brief injunction so he might contemplate shifting to new employment whereas bringing his shoppers with him. Based on Frank’s criticism, Hightower tried phasing Frank out of working together with his shoppers to learn 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 accordance with the unique criticism.
In 2016, he lower his hours whereas maintaining his title and duties, however Frank claimed LWM started altering his position to “member emeritus” with out consulting him. Quickly Frank misplaced the prospect to have the ultimate say about his consumer accounts.
Based on Frank’s criticism, 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 criticism 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 criticism with the Massachusetts Fee In opposition to Discrimination, and the agency suspended him, purportedly due to an electronic mail he had despatched to shoppers.
The suspension has since ended, however as of now, Frank stays at Hightower. Based on his criticism, he’s unable to convey his current shoppers with him if he leaves because of the non-solicitation settlement.
In her choice, Squires-Lee mentioned the general public would additionally profit from permitting Frank’s long-time clients to go together 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, needs to be theirs to make.”
