Edelman Financial Engines has filed an appeal with the Tenth Circuit Court of Appeals to challenge a federal judge's decision to dismiss its trade-secrets lawsuit against Mariner Wealth Advisors.

Key Points

• Judge Holly Teeter dismissed the case in June, ruling that Edelman failed to prove that client lists taken by departing advisors constituted protected trade secrets.
• Edelman originally sued Mariner in 2023, alleging the firm encouraged advisors to breach non-solicitation agreements and misappropriate confidential client information.
• The lawsuit specifically highlighted the recruitment of former Edelman advisor Michael Horne, involving direct communications from Mariner CEO Marty Bicknell.
• Judge Teeter criticized Edelman’s legal team for improper briefing practices, including the misrepresentation of evidence and a consistent failure to provide necessary citations.

Why it Matters

This appeal highlights the ongoing legal tensions regarding advisor mobility and the protection of client data within the competitive wealth management industry. The outcome could set a significant precedent for how firms enforce non-solicitation agreements and define trade secrets when recruiting talent from rival companies.