Ameriprise Disputes LPL Defamation Claim – WealthManagement.com
Ameriprise argues that a data breach notice it sent to current and former customers, some of whom are now with LPL, was an obligation and something LPL had agreed to under prior court orders.
April 21, 2025
Ameriprise has shot back at LPL Financial after the rival broker/dealer filed a defamation complaint claiming Ameriprise had sent “misleading” notifications about a data breach to customers, including those who had moved to LPL.
On Friday, Ameriprise sought to strike down LPL’s defamation claim, arguing in a court filing that it was obligated to send a letter about a potential data breach to customers whose personal information had been exposed by former Ameriprise advisors who had moved to LPL.
“LPL used its recruits to engage in an unlawful practice, which is why we’re in this situation,” Minneapolis-based Ameriprise said in a comment via email. “LPL is now seeking to shift the narrative away from its own misconduct because it doesn’t like that its advisors are receiving calls from clients who are worried their personal information is at risk.”
Ameriprise’s response seeks to deny the motion for a temporary restraining order that San Diego-based LPL filed against Ameriprise in the U.S. District Court of Southern California on Monday.
In that motion, LPL claimed that the data breach notification was false, as the clients who moved to LPL had consented to the data being shared, and that the letter was actually sent to frighten LPL customers and hurt its business. It asked the court to require Ameriprise to provide the names of the clients who received the notice and halt further communications.
LPL Promotes Five to Create New Management Level
The back-and-forth adds to legal disputes between the competitors in various courts regarding advisor recruiting and client poaching.
At the heart of this most recent data dispute is a spreadsheet Ameriprise calls the “Bulk Upload Tool.” The firm claims 30 former advisors who had moved to LPL used it to access customer information.
Ameriprise said in its opposition that the letter it sent to customers related to the Bulk Upload Tool was only “to inform impacted individuals that their data had been shared without their authorization and contrary to Ameriprise’s privacy policy,” and that the notice was “completely lawful.”
The broker/dealer also alleged that LPL’s complaint followed “a process to which it literally agreed in a stipulated order before this court in a prior case.”
The firm also argued it was obligated to send the letter under state data breach laws active in 47 states and that it was not used “as a litigation strategy.” According to the court filing, those states require notification if data, including a person’s social security number, driver’s license, or financial account information such as a credit or debit card, is exposed.
Large IBDs Sweeten Their Recruiting Deals for Commonwealth FAs
It also argued that the letter was sent to customers who had been with Ameriprise at the time of the breach and therefore had the right to know about it, even though they may now be with LPL or another firm.
“And even though LPL advisors may have had business relationships with these customers, past or present, that does not entitle them to take confidential personal information about these individuals without authorization and share that information with another company,” Amerirprise’s attorneys wrote.
Ameriprise is also seeking to have the court waive LPL’s request that it send the names of the customers who received the letter. The firm said it had no further plans to discuss the data breach with customers except for any inbound requests it receives from those who had received the letter.
LPL did not immediately respond to a request for comment regarding the filing.
You May Also Like
RIA Edge 100: Growing Rapidly but Responsibly
Apr 16, 2025
Apr 10, 2025
Apr 9, 2025
Sponsored Content
What truly sets peak performing retirement plans apart?
Sponsored Content
Mid-Year Developments in Estate Planning
Sponsored Content
GrowthTech Summit: AI, Tech Stacks & Growth Strategies for Future-Ready Advisory Firms
Sponsored Content
Ask the Experts: Grow Your Practice with Philanthropy: Comparing DAFs and Private Foundations
Featured WMIQ Research
Discover how cutting-edge AI and data analytics are transforming advisor-client relationships.
Latest Digital Edition
Feature on Estate Planning & Taxation
Copyright © 2025 Informa Connect Limited. Registered in England & Wales with number 01835199, registered office 5 Howick Place, London, SW1P 1WG.
source
This is a newsfeed from leading technology publications. No additional editorial review has been performed before posting.
