The ongoing skirmish between Bellevue, Washington-based financial advisor Lars Knudsen and independent wealth giant Hightower Advisors has taken another turn as Knudsen claims a number of legal wins.
The saga, which has drawn considerable attention, revolves around contractual breaches and defamation.
It began with a lawsuit Knudsen filed against Hightower in King County, Washington, on March 20, in which Knudsen claimed Hightower employed questionable tactics, such as illegal noncompete clauses and false allegations about him, in an effort to poach his clients.
In the weeks since, the two parties have engaged in a furious legal back-and-forth.
Immediately after Knudsen’s filing, Hightower launched its own suit against him in Illinois federal court, after which Knudsen filed to request a temporary restraining order against the firm. When that failed, he challenged Hightower’s motion to move the case to federal court, filing a motion to stay the Illinois action in favor of the action he launched in Washington.
So far, Knudsen’s camp has claimed victories on several fronts, including a Washington district court decision to remand the lawsuit back to the state level, a decision by the state court’s commissioner granting a temporary restraining order against Hightower, and a Washington state court judge's decision to quash a request from Hightower to hear a motion to dismiss the case on an expedited basis.
The state commissioner’s temporary restraining order against Hightower, handed down Tuesday, was sought by Knudsen – supported by more than a dozen sworn declarations from his clients – to halt what he described as a campaign of disinformation by Hightower along with Hightower Bellevue partners Dan Stober, Randy Williams-Gurian, Tara Johnson, and Sharon Lailey.
“The legal process can be complicated with a lot of moving parts, but we will continue to work with integrity and respect for the judicial system,” Andrew R. Escobar, a partner at Seyfarth Shaw who’s representing Knudsen, said in an emailed statement.
“While we hope for a quick resolution to this legal matter, these milestone victories keep us on a legal pathway we hope will lead to an amicable and swift conclusion that allows Lars to move forward serving his clients as he has for decades,” Escobar said.
“HighTower seems to think they can say anything, even the most egregious accusations, without any repercussions,” Knudsen said in the statement. “I have always been willing to reach a resolution and maybe these rulings will lead to a more productive discussion with HighTower executives and advisors.”
The case parallels another recent lawsuit against Hightower in California, where veteran advisor Darren Reinig said the firm was kneecapping his ability to build a new business with overreaching noncompete claims.
Relationships are key to our business but advisors are often slow to engage in specific activities designed to foster them.
Whichever path you go down, act now while you're still in control.
Pro-bitcoin professionals, however, say the cryptocurrency has ushered in change.
“LPL has evolved significantly over the last decade and still wants to scale up,” says one industry executive.
Survey findings from the Nationwide Retirement Institute offers pearls of planning wisdom from 60- to 65-year-olds, as well as insights into concerns.
Streamline your outreach with Aidentified's AI-driven solutions
This season’s market volatility: Positioning for rate relief, income growth and the AI rebound
