UBS brought a suit against Michael Platte in October, accusing him of secretly bringing “key producers” to its New Albany, Ohio office who would then solicit UBS clients to move to the new firm, as reported.
The wirehouse had placed Platte on administrative leave in September and fired him in October, with Lance White and Matthew Penrod resigning days after. Platte and six of the former UBS advisors, including White and Penrod ended up at Morgan Stanley, which UBS claims paid them transition packages worth more than $25 million.
Last week, the U.S. District Court in the Southern District of Ohio, Eastern Division, enjoined Platte from soliciting, directly or indirectly, any client he worked for, supervised or solicited work from during the one year prior to his termination from UBS, according to court documents.
The court also enjoined Platte and Penrod from soliciting or initiating contact with any UBS client they served pursuant to an agreement they signed with UBS in October 2015, while all three are enjoined from soliciting clients they served during their employment with UBS. Platte and Penrod had been with UBS since 2007 and White since 2008, according to BrokerCheck.
However, Platte, Penrod and White can solicit and initiate contact “with clients he introduced to their Financial Advisor Team at UBS at its inception or during its existence,” according to court documents. Moreover, all three, as well as Morgan Stanley, can return phone calls and emails to UBS clients, process account transfer requests from those clients and do business with them after the account transfers, the court ruled.
Platte must also cease trying to recruit current UBS employees to join Morgan Stanley, and all three must return all UBS confidential documents regarding UBS clients and employees, according to court documents.
The injunction is in effect until October 2020, the court ruled.