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Delaware Judge Dismisses United Capital's Poaching Lawsuit Against Osaic With Leave to Amend

Posted on July 16th, 2026 at 3:07 PM
Delaware Judge Dismisses United Capital's Poaching Lawsuit Against Osaic With Leave to Amend

From the desk of Jim Eccleston at Ä¢¹½´«Ã½

A Delaware judge has dismissed United Capital's lawsuit accusing Osaic of improperly recruiting financial advisors and soliciting client assets, but allowed the wealth management firm to file an amended complaint, according to AdvisorHub.

Judge Sheldon K. Rennie of the Delaware Superior Court ruled that United Capital's complaint did not allege enough factual detail to support its claims. As AdvisorHub reported, the court acknowledged that United Capital had not yet conducted discovery and therefore had limited access to Osaic's internal information. Even so, the judge concluded that the complaint lacked sufficient factual allegations to permit reasonable inferences supporting the claims.

United Capital originally filed the action in December, alleging that Osaic aided and abetted fraudulent concealment by encouraging three Fort Lauderdale-based financial advisors to violate their employment agreements during their 2023 transition to Osaic. According to AdvisorHub, United Capital claimed the advisors improperly took confidential client information and solicited customers, resulting in the transfer of approximately $237 million in client assets within four months of their departure.

The dispute represents one of two similar lawsuits United Capital filed against competing wealth management firms.

According to AdvisorHub, United Capital also sued Apollon Ä¢¹½´«Ã½alth Management in December 2025, alleging that the registered investment adviser encouraged a group of Atlanta-based advisors to carry out an unlawful plan to divert United Capital's business. The complaint alleges that approximately $470 million in client assets left the firm as a result.

Apollon asked the court to dismiss that lawsuit or transfer the case to another forum, arguing that neither party maintained a meaningful connection to Delaware. However, as AdvisorHub reported, Judge Rennie denied Apollon's motion to dismiss on June 16, allowing that litigation to proceed.

According to AdvisorHub, United Capital manages approximately $17.2 billion in advisory assets. Creative Planning acquired the firm from Goldman Sachs in August 2023.

Ä¢¹½´«Ã½ LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law, securities litigation, wealth management, financial advisor recruiting, poaching lawsuit, client solicitation

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