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

Thank you for your professional assistance with this matter. You are very good at what you do.

John T.

LATEST NEWS AND ARTICLES

1774367895 Law
March 24, 2026
Former Morgan Stanley Advisor Convicted in $5 Million Fraud Scheme Involving NBA Players

A federal jury convicted former Morgan Stanley advisor Darryl Cohen for orchestrating a fraud scheme that targeted three professional basketball players and resulted in losses totaling approximately $5 million, according to Wealth Management.

1774288690 Law
March 23, 2026
FINRA Charges Sutter Securities and Former CEO in Excessive Trading Case Involving Elderly Client

The Financial Industry Regulatory Authority (FINRA) has filed an enforcement complaint against Sutter Securities Inc.

1774034084 Law
March 20, 2026
McKinsey Forecasts Sweeping Changes for Wealth Management Over the Next Decade

The U.S.