Edelman Financial Engines and Prime Capital Settle Advisor Poaching Suit

Edelman Financial Engines and Prime Capital Financial have reached a settlement to end a legal dispute that began in 2024. The conflict centered on allegations that Prime Capital poached advisors and breached non-solicitation agreements to misappropriate confidential client information.

As part of the agreement, the firms will implement a court-ordered injunction establishing strict transition protocols for any Edelman planners who join Prime Capital. These protocols require departing planners to provide a formal resignation and a confirmation of compliance with company obligations, alongside a mandatory transition period of at least 14 business days.

Prime Capital is prohibited from encouraging advisors to solicit clients and must ensure that planners adhere to all confidentiality obligations. Furthermore, Prime Capital will reimburse Edelman for the costs associated with mailing client notices regarding advisor departures. The two firms intend to file for dismissal of all underlying cases once the court enters the joint injunction.