LPL Financial is firing back at its rival Ameriprise's wholesale legal indictment of its recruiting methods, calling an ongoing court challenge "a public relations stunt masquerading as a lawsuit."
LPL on Thursday filed a motion in federal court in San Diego opposing Ameriprise's previous request for a preliminary injunction seeking to bring a halt to some of its recruitment practices. Ameriprise has contended LPL's recruiting methods reveal a "widespread pattern and practice of harvesting and misappropriating Ameriprise's private, confidential client information and trade secrets."
In its reply on Thursday, LPL argues Ameriprise's accusations rest on a "cynical" misportrayal of how recruiting deals typically take place between independent broker-dealers. It also warns that victory for Ameriprise could have a chilling effect on independent advisors' long-cherished ability to move from one firm to another.
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"For years, advisors have left Ameriprise to work with LPL because LPL offers a superior opportunity for these advisors to serve their customers," according to the suit. "Advisors' preference for LPL is not surprising: while LPL champions the independence of its advisors, Ameriprise gives it only lip service. Frustrated by its failure to compete in the market, Ameriprise has fired back, filing this suit and this motion as a means to issue press releases tarring LPL with false accusations of impropriety and simultaneously scare its advisors into staying put."
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