Summary
- Eastern District of Virginia allows most claims against former Arthur J. Gallagher & Co. employees and Granite Wealth Management to proceed.
- Gallagher alleges the former employees transferred more than 140 client accounts and confidential business information to GWM.
- The court rejected defendants’ argument that FINRA arbitration barred Gallagher’s federal claims because Gallagher is not a FINRA member.
- The court dismissed the tortious interference claim but allowed breach of contract, fiduciary duty, conspiracy and related claims to continue.
A company that claimed two former employees who left for a competitor that aided in transferring client accounts and confidential business information will see its claims proceed after a federal court denied in part a motion to dismiss the case.
The U.S. District Court for the Eastern District of Virginia held in Arthur J. Gallagher & Company v. Markfeld (VLW 026-3-326) that the plaintiff plausibly alleged a claim to be decided in court on most counts.
The defendants had argued that the plaintiff lacks a “personal stake” and “cannot suffer any alleged injury for claims relating to the provision of brokerage services” and that the court is not the proper venue for the dispute.
U.S. District Judge Roderick C. Young wrote that the plaintiff “alleges a concrete economic injury” in its argument.
“Defendants cite no authority for the proposition that a plaintiff alleging a direct loss of revenue from a defendant’s conduct...
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