Deutsche Bank Sued by Merrill over Hiring ‘Raid’

Merrill Lynch has sued Deutsche Bank, calling its poaching of a group of 12 employees that had collectively 'generated tens of millions of dollars in annual revenues for Merrill Lynch' a 'raid.'

The lawsuit, filed Tuesday in New York State Supreme Court in Manhattan, says Merrill Lynch Treasurer Eric Heaton and 11 other employees resigned on February 3. “Deutsche Bank lured away every single one of these 12 Merrill Lynch employees in virtually simultaneous fashion. These employees gave notice at such a rapid clip that at least one Merrill Lynch employee tried to give notice of his resignation before another of the employees even had finished giving notice himself,’ the suit says. Deutsche Banks announced the hiring of the employees the same day.

According to Merrill “these mass resignations occurred in rapid-fire sequence, were carefully orchestrated, and clearly were part of a plot by Deutsche Bank to raid a key and very profitable Merrill Lynch business unit, the Financial Institutions Group.’ The plans were allegedly made by Deutsche Bank “many months in advance.”

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The lawsuit says Heaton failed to give a required six months written notice before leaving, and also violated a noncompetition agreement by joining Deutsche Bank.

Merrill is asking for compensatory damages of more than $100 million, as well as punitive damages, and is also asking for an order to enforce its contract against Heaton.


The case is Merrill Lynch & Co vs. Deutsche Bank AG, New York State Supreme Court, No. 600661/2009.

Davis to Anchor CAPTRUST West Coast Expansion

CAPTRUST Financial Advisors has reached out in another direction for its second big acquisition of 2009.
Mark A. Davis, 17-year veteran of the retirement industry and founding principal of Kravitz Davis Sansone, Inc., has joined CAPTRUST Financial Advisors. Davis, a well-known expert in the retirement industry, routinely addresses national industry conferences and plan sponsor forums. Most recently, Davis worked with members of the U.S. Senate, House of Representatives, and the Government Accountability Office on a variety of retirement plan issues affecting plan sponsors and plan participants.
CAPTRUST described the move as “another significant step in the firm’s strategic plans to have a physical presence in each of the nation’s leading retirement markets.’ Earlier this year CAPTRUST lured industry veteran Steve Wilt and three of his partners at the Akron, Ohio-based Star Group from Merrill Lynch (see Wilt & Team Set a New Course). Wilt now leads CAPTRUST’s Midwest operations.
“Joining CAPTRUST was a natural decision for me,’ said Davis. “As the retirement industry continues to change, the need for independent and objective advice has never been more critical. CAPTRUST is a highly focused retirement advisory firm with the resources and professional support in place to greatly enhance my ability to serve my fiduciary clients in today’s rapidly dynamic environment.’
“Our success hinges on our ability to attract talented advisers who can distinctly help plan sponsors and their participants navigate the growing list of challenges they are facing,’ added J. Fielding Miller, CAPTRUST co-founder and CEO. “Adding Mark Davis to our ranks is a major win for CAPTRUST, but more importantly, a major win for our clients. We could not be more thrilled with having Mark lead our firm’s efforts in California.’
CAPTRUST Financial Advisors is an independent investment research and retirement advisory firm specializing in providing strategic advisory services to retirement plan fiduciaries, executives, and high net-worth individuals. Headquartered in Raleigh, N.C., the firm represents $22 billion in client assets.


More information is available at www.captrustadvisors.com. See also Miller Time

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