(Bloomberg) -- Lyell Wealth Management fired back at BNY Mellon, accusing it of unfairly competing for the dollars of "high-net-worth clients" after the bank alleged that the firm's owners poached customers and employees.
The bank and its affiliates have "systematically misrepresented the scope, quality and nature of their financial services and products," Lyell, an RIA, said in a lawsuit filed Thursday in federal court in Oakland, California.
The lawsuit comes three weeks after BNY Mellon sued Lyell for allegedly violating a non-compete agreement following the bank's purchase in January of Atherton Lane Advisers, where Lyell's co-founders were previously employed. BNY Mellon claimed Atherton's former owners violated the agreement by setting up the new company, Lyell, and luring away clients and employees.
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Carrie Tolstedt, formerly in charge of the community banking unit, and the wirehouse's board were named in the litigation.
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Lyell is asking for a court order barring BNY Mellon from engaging in unfair business practices and an award of unspecified damages.
BNY Mellon representatives didn't immediately respond after regular business hours to a phone call seeking comment on the complaint.
--With additional reporting from Andrew Welsch
