Tr?id=566623520170033&ev=PageView&noscript=1

Hightower Fails To Stop Former Advisor From Establishing Competing Business

Posted on March 6th, 2023 at 3:03 PM

From the Desk of Jim Eccleston at Eccleston Law

A former Alabama-based Hightower advisor has prevailed in court after the firm attempted to stop the advisor from establishing a competing firm. 

A Delaware court determined that Hightower’s five-year non-compete was “likely void” under an Alabama law prohibiting restrictions that are overly broad, according to a court order. The Alabama-based advisor, John Gibson, signed the five-year non-compete when he sold his business to Hightower in 2019. The court further determined that the public’s interest in having the ability to access their advisor’s expertise at his new firm, BrightHaven Capital Management, outweighed Hightower’s contention that Gibson was excluded from Alabama’s non-compete ban under an exemption. 

However, losing the injunction does not restrict Hightower from continuing to pursue damages. The court ruling relates to the current public policy debates disfavoring non-compete clauses. Gibson, who oversaw $1.5 billion in assets, allegedly already has transferred $3.3 million worth of client accounts to Brighthaven, according to Hightower. 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory and disciplinary matters.

Tags: Eccleston, Eccleston Law

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

Hiring Eccleston Law has been one of the best career decisions I have made and this "investment" to maintain my sterling regulatory record has been returned many times over.  If you are in a situation where you've been unfairly accused, don't hesitate to talk with Eccleston Law. They are the best.

Thomas C.

LATEST NEWS AND ARTICLES

1793209405 Law
October 28, 2026
FINRA Panel Orders Kingswood Capital Partners and Executives to Pay Former Advisor $11.3 Million

A Financial Industry Regulatory Authority (FINRA) arbitration panel has ordered Kingswood Capital Partners LLC, CEO Michael Nessim, and Chief Compliance Officer Mohamed Alsoraimi to pay former advisor Rikin Patel $11,341,369.25.

1793123026 Law
October 27, 2026
CFTC Seeks Public Comment on Proposed Crypto Asset Regulatory Framework

The Commodity Futures Trading Commission (CFTC) has issued an Advanced Notice of Proposed Rulemaking (ANPRM) seeking public comment on a potential regulatory framework for retail commodity transactions involving crypto assets, which the agency calls "CTXs." According to the CFTC's press release, the initiative focuses on Section 2(c)(2)(D) of th...

1793034027 Law
October 26, 2026
FINRA Bars Former Wedbush Broker Over $3.5 Million in Complex ETP Losses

The Financial Industry Regulatory Authority (FINRA) barred former Wedbush Securities broker William H.