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An Ohio federal court has dismissed a complaint brought by mega-RIA Mariner Wealth Advisor against upstart Savvy Advisors for allegations of poaching advisors without “regard to contractual obligation.”
In a ruling issued last Friday, the U.S. District Court for the Southern District of Ohio Western Division dismissed the case with prejudice, meaning it cannot be brought before the court again.
Mariner filed the initial complaint in June 2024, suing Savvy Wealth, the parent of Savvy Advisors, and advisors Brad Morgan, Nate Kunkel and Tim Gerard. The lawsuit included accusations of Savvy and the advisors taking Mariner’s “confidential customer information, customer lists and customer contact information” and soliciting Mariner customers, which the plaintiff said amounted to bringing over $60 million in managed assets.
A Savvy spokesperson said the firm was pleased with the “resolution of the case.”
“We have long opposed the use of restrictive covenants to bind advisors and their clients to firms,” the spokesperson wrote via email. “Advisors should be free to make career decisions that reflect their best interests and those of their clients. Savvy remains committed to empowering advisors to grow their practices and deliver exceptional client service—without unnecessary restrictions or interference.”
New York-based fintech Savvy Wealth was founded in 2021 by Ritik Malhotra as a platform for RIAs, and has been growing its RIA practice steadily, both by advisors and AUM. In July, the firm announced that a team of eight advisors had left Focus Financial Partners to join with $270 million in client assets, bringing its total to 68 people overseeing over $2.2 billion in AUM.
Mariner declined to comment on the court dismissal.
According to the original complaint, Savvy advisor Morgan had been an equity owner in Mariner, starting in 2014, and Kunkel and Gerard joined the RIA in 2018. The trio, also according to the allegations, specialized in working with Procter & Gamble employees based in Cincinnati, which they sought to bring over to their accounts with Savvy.
“Indeed, rather than cultivate customers through fair competition, Savvy seeks out experienced wealth managers from across the country to poach their books of business from competitors,” Mariner’s complaint read. “Savvy does this without regard to contractual obligations these wealth managers owe to their employers.”
According to their LinkedIn profiles, Morgan and Gerard both worked at Proctor & Gamble before joining Mariner.
Overland Park, Kan.-based Mariner has an active, similar complaint against it from Edelman Financial Engines. In that lawsuit, Edelman accuses Mariner of stealing trade secrets and breaching confidentiality agreements and non-solicitation clauses.
In June, a Kansas federal judge dismissed defamation claims Edelman made against Mariner but allowed charges of misappropriation and conspiracy to remain in place. In August, the court agreed to a request by Mariner that Edelman make available cease-and-desist letters and arbitration awards that it says are relevant to the case. The court had ordered Edelman to submit those documents by August 29.
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