Mercer Global Advisors has filed a lawsuit in California Superior Court against three former advisors who abruptly departed for a rival firm, Savvy Advisors. According to AdvisorHub, the firm alleges that three transitioning advisors conspired with Savvy to misappropriate trade secrets, to fail to provide the contractually required 30 days' notice, and to solicit clients in violation of their employment agreements.
Mercer claims all three attempted to lure clients away before their exit from the firm. The complaint asserts that Savvy knowingly enabled these alleged breaches and seeks compensatory and punitive damages, along with injunctive relief.
As reported by AdvisorHub, this is not Mercer's first time in court over advisor departures. The firm has two similar lawsuits pending in Georgia and cited another case brought against Savvy Wealth by Mariner Advisors. In that matter, a preliminary injunction was granted to Mariner, with further claims still pending.
Savvy Advisors, a New York-based RIA backed by over $100 million in venture capital, including a recent $72 million raise, has denied similar allegations in prior filings. A spokesperson for Savvy declined to comment on the ongoing litigation with Mercer, according to AdvisorHub.
Financial Advisor Transitions consults advisors nationwide to explore employment transition options and to preserve and protect their practice in any transition that they make.
