Creative Planning is a registered investment advisor (RIA) that manages over $245 billion in assets for clients across the United States. In recent years, the firm has been involved in a number of lawsuits, including two high-profile cases that are currently ongoing.
Client Sues Creative Planning Over $9.5M Loss
In August 2023, a client of Creative Planning, Bruce Bilow, filed a lawsuit against the firm alleging negligence and breach of fiduciary duty. Bilow claims that Creative Planning lost him $9.5 million in Boeing stock due to its negligent investment management.
Ex-Employees Sue Creative Planning Over Non-Compete Agreements
In August 2023, four former Creative Planning employees filed a lawsuit against the firm alleging that its non-compete agreements are illegal and unenforceable. The plaintiffs claim that the non-compete agreements prevent them from working in the financial services industry in California, which is a violation of state law.
What’s Next for Creative Planning Lawsuits?
The Creative Planning lawsuits are still in their early stages, and it is too early to say what the outcome will be. However, the cases have raised important questions about the firm’s investment practices and its treatment of employees.
What Should Clients of Creative Planning Do?
If you are a client of Creative Planning, you should monitor the ongoing lawsuits closely. You should also review your investment accounts carefully to make sure that your investments are aligned with your risk tolerance and financial goals. If you have any concerns about your account, you should speak to a financial advisor.
FAQs:
Q: What is Creative Planning?
Creative Planning is a registered investment advisor (RIA) that manages over $245 billion in assets for clients across the United States.
Q: What is a registered investment advisor (RIA)?
An RIA is a financial professional who is registered with the Securities and Exchange Commission (SEC). RIAs are fiduciaries, which means that they have a legal obligation to act in the best interests of their clients.
Q: What is a non-compete agreement?
A non-compete agreement is a contract between an employer and an employee that restricts the employee’s ability to work for a competitor after leaving the company.
Q: Are non-compete agreements legal?
Non-compete agreements are generally legal in the United States, but they are subject to state law. Some states have laws that restrict the enforceability of non-compete agreements.
Q: What should I do if I am a client of Creative Planning?
If you are a client of Creative Planning, you should monitor the ongoing lawsuits closely. You should also review your investment accounts carefully to make sure that your investments are aligned with your risk tolerance and financial goals. If you have any concerns about your account, you should speak to a financial advisor.
Conclusion
The Creative Planning lawsuits are still in their early stages, and it is too early to say what the outcome will be. However, the cases have raised important questions about the firm’s investment practices and its treatment of employees.
Clients of Creative Planning should monitor the ongoing lawsuits closely and review their investment accounts carefully. If you have any concerns about your account, you should speak to a financial advisor.
References:
- ThinkAdvisor: https://www.financial-planning.com/news/ria-referrals-under-scrutiny-in-lawsuit-against-creative-planning
- Financial Advisor IQ: https://www.fa-mag.com/news/creative-planning-sued-by-four-ex-employees-over-noncompete-clauses-74529.html
- Citywire: https://www.capitalgroup.com/ria/insights/news/article/citywire-ex-creative-planning-employees-sue-over-non-compete-agreements-a2424728?category=Industry%20News
