LPL Adviser Team Appeals Court-Ordered Handover of Client Data
By Staff
In the continuing drama over client data between wealth management rivals LPL Financial and Ameriprise Financial, a New York-based advisory team which moved from Ameriprise to LPL in December 2019 is appealing a court order that would require them to hand over sensitive client information.
This latest development adds a new layer to the conflict, which previously saw the two firms settle a separate defamation lawsuit. As reported by AltsWire in May 2025, LPL dropped its defamation claim against Ameriprise after the firms agreed on how to handle data breach notices sent to clients.
In that instance, Ameriprise agreed to inform LPL which specific customers received the notices that LPL had alleged were defamatory, according to the order approved by a federal judge. However, the agreement limited LPL’s outreach to the list; LPL could only contact customers who had already transferred their accounts to LPL, not those who remained with Ameriprise.
Furthermore, both firms agreed to give each other 48 hours’ notice before sending any future communications to LPL clients affected by the alleged data breach.
The agreement resolved the immediate issue but left open the possibility of future legal action through arbitration. The court order explicitly allowed LPL to continue pursuing claims for damages related to defamation and other allegations through the arbitration process.
The current dispute stems from a lawsuit Ameriprise filed against LPL in the U.S. District Court of Southern California, alleging trade secret misappropriation. Ameriprise claims that LPL helped the advisory team move client data between the firms. The team, known as Canal View Financial Advisors, was not initially a party to the case but intervened to challenge a court order that would allow a forensic examiner to search their personal phones and other devices.
The advisers’ attorney argues that the order is an invasion of privacy and conflicts with their right to have an arbitration panel from the Financial Industry Regulatory Authority determine ownership of the customer information. The team of financial advisers recently notified the district court of their appeal to the U.S. Court of Appeals for the Ninth Circuit.
In a June court filing, the advisers’ attorney emphasized that their interests differ from LPL’s, the original defendant in the case. The attorney argued that the court order would force the advisers to either physically surrender their devices or install remote-imaging tools, temporarily losing access to devices they use daily. The attorney stated that this “clearly constitutes interference with their property rights.”
LPL has also weighed in, previously filing a motion to stay the case pending the advisers’ appeal. The firm has consistently denied Ameriprise’s claims of trade secret theft. In a late 2024 filing, an LPL attorney called Ameriprise’s motion for an injunction “meritless” and described the lawsuit as a “public relations stunt masquerading as a lawsuit.”
“The independent broker-dealer space in which LPL and Ameriprise operate and compete is a free market: financial advisers can and often do move between firms looking for the best platform to service their customers,” the filing stated.
Click here to visit the AltsWire directory page.
