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

I am grateful to have found an outstanding law firm that specializes in securities matters. My lawyers were extremely knowledgeable, diligent, and are skilled litigators. No stone was left upturned. As a result of their experience and tenacity, the arbitration proceeding was dismissed in my favor.

Michael E.

LATEST NEWS AND ARTICLES

1793380402 Law
October 30, 2026
Former LPL Broker Faces Federal Charges in Alleged $11 Million Ponzi Scheme

Federal prosecutors accuse former LPL Financial broker William B.

1793294906 Law
October 29, 2026
FINRA Bars Former LPL Financial Broker for Refusing to Cooperate With Investigation

?The Financial Industry Regulatory Authority (FINRA?) barred Buddy Dean Mason, a former LPL Financial broker in Lakeland, Florida, after he refused to provide documents and information during an investigation into a customer complaint involving an alleged outside investment.

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.