J.P. Morgan has lodged allegations against a former employee, asserting that she is poaching clients at her current post in a rival unit at Wells Fargo. The accusations detail how the ex-investment management advisor has been making unsolicited contact with clients, via both phone calls and emails, in an effort to convince them to sever ties with J.P. Morgan. This, according to the allegations, constitutes a violation of her employment contract with J.P. Morgan.
A direct and unambiguous violation of a non-compete cause in the contract, such a move, if proven, could have significant legal repercussions. As highlighted by many previous cases, courts generally view an employee’s attempt to unfairly disadvantage a previous employer by leveraging insider knowledge or connections negatively.
Yet, these accusations remain to be proven, and neither J.P. Morgan nor the former advisor have commented on the allegations publicly. Generally, cases of this nature tend to be settled away from the public eye, given the reputational risk to both parties involved. However, their resolution could have far-reaching implications for industry practices on talent mobility and fair competition.
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