Ameriprise files lawsuit against LPL for ‘misusing’ client information

Ameriprise Financial Services (AMP) said it filed a lawsuit today in United States District Court contending that LPL Financial (LPLA) “is engaged in a widespread pattern and practice of harvesting and misusing private, confidential client information as they recruit advisors in violation of legal, regulatory and industry obligations.” The lawsuit alleges that LPL “systematically directs the advisors it recruits from Ameriprise and its competitors to take confidential information on their way out the door.” The company believes “these actions are in direct violation of multiple securities laws and regulations, as well as the standards LPL is legally bound to follow as a member of the broker protocol for recruiting.”