In the US, where UBS has settled a dispute with former employees, the legal gloves always seem to be off. Nevertheless, the case is still being vigorously pursued in the US.
Swiss bank UBS recently took several ex-employees to court in the US. Now its wealth management unit settled the lawsuit with a 16-member team of private bankers. According to a court document, the two sides filed a consent decree, «AdvisorHub» reports.
Alleged Contacts With UBS Clients
The case revolved around a team of advisors producing annual revenues of $8 million on $1.5 billion in client assets that left UBS for RBC
UBS initiated the litigation in early November when it filed a lawsuit in an Indiana court accusing the brokers of violating non-solicitation agreements. The private bankers had allegedly contacted UBS clients to lure them to RBC.
Another Round Coming Up
The six-page agreement, according to AdvisorHub, prohibits the advisors from soliciting some clients they previously served at UBS. As a condition of the settlement, the two sides agreed on which clients would be covered by different agreements. The advisers did not waive their right to challenge any client, but they agreed, among other things, to work in good faith to resolve these issues, according to the court document.
The two parties have not yet taken their dispute to arbitration, as the Swiss bank had filed a complaint for a permanent injunction and damages with the Financial Industry Regulatory Authority (Finra) before going to court.
UBS is pleased with the outcome of the court case and will now vigorously pursue its claims for damages in the Finra arbitration, «AdvisorHub» said, quoting an email from the Swiss bank.
