Attorneys with Sheppard Mullin Richter & Hampton successfully argued for a preliminary injunction against former employees accused of poaching clients from a Virginia-based financial services firm, disputing whether customer information was allowed to be taken under industry standards when the defendants resigned.
A key dispute arose over the Protocol for Broker Recruiting—an industry standard among broker-dealers and firms in the securities industry that governs the use of client data when employees move between firms—and whether a “raiding exemption” subjected the defendants to a two-year nonsolicitation provision, according to an opinion filed July 23 in U.S. District Court for the Eastern District of Virginia in Salomon & Ludwin v. Winters.
