Advisors in Texas and Nebraska last week agreed to stop soliciting their former clients, but Schwab and Fidelity Investments also last week withdrew complaints against breakaway brokers in Wisconsin and Connecticut.
Charles Schwab Corp. said it is cutting 600 jobs, or about 3% of the workforce, as the San Francisco-based broker-dealer and wealth-advisory firm faces “an increasingly challenging economic environment.”
The discount brokerage pioneer has brought at least five lawsuits since July claiming contractual violations over client solicitation.
Terri Kallsen, the head of Schwab’s investor services unit, lost her job in July as part of a broad restructuring.
Filings in court and with Finra are the discount brokerage pioneer’s third attempt in less than two weeks to prevent departing brokers from soliciting former clients.
Schwab’s claim for an injunction comes as lawyers say non-solicitation disputes have mushroomed in the past year industry-wide.
Rollup firm, whose private equity owner is believed to be in merger negotiations, sued an advisor last week who joined a rival RIA group.
Michigan woman, 63, asserts that she was railroaded over e-mails sent to Schwab’s RIA clients about company policies.
Its core cash-sweep into a high-yielding government money-market fund pressures competitors only days after Fed cut rates.