Washington advisor claims victories in Hightower noncompete saga

investmentnews.com:

The ongoing skirmish between Bellevue, Washington-based financial advisor Lars Knudsen and independent wealth giant Hightower Advisors has taken another turn as Knudsen claims a number of legal wins.

The saga, which has drawn considerable attention, revolves around contractual breaches and defamation.

It began with a lawsuit Knudsen filed against Hightower in King County, Washington, on March 20, in which Knudsen claimed Hightower employed questionable tactics, such as illegal noncompete clauses and false allegations about him, in an effort to poach his clients.

In the weeks since, the two parties have engaged in a furious legal back-and-forth.

Immediately after Knudsen’s filing, Hightower launched its own suit against him in Illinois federal court, after which Knudsen filed to request a temporary restraining order against the firm. When that failed, he challenged Hightower’s motion to move the case to federal court, filing a motion to stay the Illinois action in favor of the action he launched in Washington.

So far, Knudsen’s camp has claimed victories on several fronts, including a Washington district court decision to remand the lawsuit back to the state level, a decision by the state court’s commissioner granting a temporary restraining order against Hightower, and a Washington state court judge’s decision to quash a request from Hightower to hear a motion to dismiss the case on an expedited basis.

The state commissioner’s temporary restraining order against Hightower, handed down Tuesday, was sought by Knudsen – supported by more than a dozen sworn declarations from his clients – to halt what he described as a campaign of disinformation by Hightower along with Hightower Bellevue partners Dan Stober, Randy