Three former employees of a U.S. Bank are accused in a lawsuit of attempting to entice wealthy clients through questionable methods.
U.S. Bank has taken legal action against three of its former wealth managers, James Kirk, Darcy Frederickson, and Jason Beumer, who left the bank on April 15 to join Royal Bank of Canada (RBC). The bank has filed a lawsuit alleging that the trio violated their contracts by aggressively pursuing their U.S. Bank customers to solicit their business.
In the lawsuit, U.S. Bank claims that the wealth managers primarily serviced clients with between $10 million and $75 million in assets, with some clients worth far in excess of that. The customers accounted for combined assets under management of nearly $700 million and $4 million in annual revenue. If even a fraction of these targeted customers were to move their business from U.S. Bank to RBC Wealth Management, it could result in significant losses for U.S. Bank.
U.S. Bank has requested Judge Laura Provinzino to issue a temporary restraining order barring Kirk, Frederickson, and Beumer from soliciting U.S. Bank customers and from using its confidential information. The hearing for the temporary restraining order is set for May 15.
Through its own investigation, U.S. Bank found that the trio contacted 24 customers on or soon after April 15. In an email to U.S. Bank, the bankers' attorney claimed that the three had deleted all U.S. Bank client information from their phones before joining RBC. However, U.S. Bank maintains that this action does not absolve the wealth managers of their contractual obligations.
The wealth managers had signed contracts that restricted their use of confidential information belonging to U.S. Bank or its customers and agreed not to solicit U.S. Bank clients after their employment. U.S. Bank has also requested compensatory damages and attorneys' fees in the lawsuit.
An attorney for Kirk, Frederickson, and Beumer did not immediately respond to a request for comment. A U.S. Bank spokesperson confirmed that the court filing outlines the bank's position in response to a request for comment. However, no new information about the case or the May 15 hearing was provided in the article.
It is recommended to consult the docket of the relevant federal or state court, contact the parties' legal representatives, or review legal databases or news sources covering business litigation involving U.S. Bank for accurate and up-to-date information on this case.
- The financial implications of this legal dispute for U.S. Bank extend beyond just the potential losses from client transfers to RBC Wealth Management, as the bank is also seeking compensatory damages and attorneys' fees from the three wealth managers.
- The news of this legal action against the wealth managers of U.S. Bank, who left to join Royal Bank of Canada, is not only a general news item but also has implications in the realm of crime and justice, as the bank alleges that their actions constitute breach of contract.
