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FINRA Arbitration Panel Orders &Partners and Broker to Pay Ä¢¹½´«Ã½lls Fargo $1.25 Million

Posted on June 9th, 2026 at 2:04 PM
FINRA Arbitration Panel Orders &Partners and Broker to Pay Ä¢¹½´«Ã½lls Fargo $1.25 Million

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

A Financial Industry Regulatory Authority (FINRA) arbitration panel has ordered &Partners and broker David M. Labourdette to pay Ä¢¹½´«Ã½lls Fargo $1.25 million in a dispute tied to what Ä¢¹½´«Ã½lls described as an "orchestrated" employee departure.

AdvisorHub reports that Ä¢¹½´«Ã½lls Fargo waited a month after Labourdette left the firm, and alleged breach of contract and violations of FINRA rules. Ä¢¹½´«Ã½lls Fargo also sued &Partners, alleging that it had aided the conduct and engaged in tortious interference.

The FINRA arbitration panel, which consisted of two public arbitrators and one non-public arbitrator, did not provide a written explanation for the decision. Although the panel awarded Ä¢¹½´«Ã½lls Fargo $1.25 million, AdvisorHub notes that Ä¢¹½´«Ã½lls Fargo reportedly had requested more than $13 million in damages, including punitive damages and attorneys' fees. The panel denied Ä¢¹½´«Ã½lls' requests for additional damages and fees but assessed all hearing session fees, totaling $14,250, against &Partners and Labourdette.

An &Partners spokesperson told AdvisorHub that the claims were "retaliatory and anti-competitive." The spokesperson stated that Labourdette sought to move the practice he built with his sons because the team believed &Partners offered a better platform for both advisors and clients.

The case is somewhat unique because both Ä¢¹½´«Ã½lls Fargo and &Partners belong to the Protocol for Broker Recruiting, which allows advisors to retain limited client contact information, notify clients when changing firms, and solicit business. The case unfolded amid Ä¢¹½´«Ã½lls Fargo's revised policies regarding advisor solicitation. Last year, the firm tightened restrictions on employee solicitation activity, however stating that it would not enforce those restrictions when advisors moved between firms participating in the Protocol for Broker Recruiting.

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

Tags: eccleston, eccleston law, finra arbitration, securities law, broker dispute, wells fargo, financial regulation

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