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

This was the best of all possible outcomes and I cannot thank you and the team enough.

Michael S.

LATEST NEWS AND ARTICLES

1784134373 Law
July 15, 2026
LPL Financial Faces Class Action Over Phoenix Annuity Disclosures

LPL Financial faces a proposed class action lawsuit alleging that the firm failed to warn annuity investors about the declining financial condition of Phoenix PHL Variable Insurance Company.

1784046159 Law
July 14, 2026
Mariner Wealth Advisors Reports Data Breach Affecting Nearly 9,000 Customers

Mariner Wealth Advisors LLC disclosed a data breach that exposed personal information of 8,995 customers, according to AdvisorHub.

1783957061 Law
July 13, 2026
FINRA Warns of Growing Risks From Finfluencers and AI-Driven Investment Content

Financial Industry Regulatory Authority (FINRA) regulators are raising concerns about the increasing influence of social media personalities and artificial intelligence (AI) on retail investors, particularly those managing their own investments without professional guidance.