SFGH Wins Preliminary Injunction for Arizona Investment Advisory Firm
Sugar Felsenthal Grais & Hammer attorneys, Elizabeth (“Lisa”) B. Vandesteeg, Kathryn C. Nadro, and Jonathan P. Friedland, recently secured a major victory in a preliminary injunction hearing for a registered investment advisory firm. The client’s former employee breached a restrictive covenant by joining a rival investment advisory firm in the same locale and poaching clients. The former employee may also have retained and used confidential information in violation of his restrictive covenant. SFGH filed a motion for temporary restraining order and preliminary injunction against the former employee and his new employer in Arizona state court. SFGH attorneys gained an immediate victory with the entry of a stipulated injunction prohibiting the former employee and the new employer from soliciting or contacting additional clients pending the outcome of an evidentiary hearing. Following that evidentiary hearing, the court ruled that the restrictive covenant was enforceable and the former employee was in violation of his obligations by soliciting clients at his new firm. The former employee and his new employer were barred from further solicitation and servicing of clients in violation of the restrictive covenant pending final resolution of the case. SFGH congratulates Lisa Vandesteeg, Kathryn Nadro, and Jonathan Friedland on their successful advocacy on behalf of their client.