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Federal judge Holly L. Teeter dismissed Edelman Financial Engines’ trade secrets lawsuit against Mariner, alleging the firm poached advisors and clients. 

The U.S. District Court for the District of Kansas ruled that Edelman failed to establish that: 

The partial client lists taken by 10 former Edelman financial planners to Mariner Wealth Advisors qualified as trade secrets or were improperly acquired under the Defend Trade Secrets Act; and/or

That Mariner advised its new hires to improperly bring client data, or that the planners brought more than the mere memory of their clients’ names (which does not rise to the level of a protected trade secret).

As such, the court determined that no reasonable jury could rule in Edelman’s favor on the trade secrets claims and granted Mariner’s motion for summary judgment.

In her decision, Judge Teeter also admonishes Edelman’s legal team for using improper briefing tactics, ranging from failing to provide citations to misrepresenting or even modifying evidence to better suit Edelman’s narrative. The decision explains that “Neither problem is a one-off; they appear throughout Edelman’s briefing, to the point that the court cannot excuse them.”

A spokesperson for Mariner told Wealth Management that, “Mariner has maintained from the outset of this litigation that these claims lacked merit, and we are pleased that the court agreed. We remain focused on serving our clients and advisors with the highest level of integrity and professionalism.”

Meanwhile, Edelman responded in a statement to Wealth Management that, “Protecting the trusted client relationships we have built over the past four decades remains a top priority. We respectfully disagree with the court’s decision, and we will continue to pursue our claims to protect the best interests of our clients, our planners and our business.”

Edelman first sued Mariner in 2023, alleging that, by enticing advisors to break their non-solicitation agreements, Mariner encouraged former Edelman advisors to breach trade secrets. Mariner responded that Edelman was using the threat of a lawsuit to send a “chilling public message” to “stifle fair competition.” 

Last year, Edelman accused Mariner CEO Marty Bicknell of personally trying to entice at least one Edelman advisor to switch firms. According to Edelman’s motion, Bicknell called Edelman advisor Michael Horne to sell the switch to Mariner; Horne resigned from Edelman in 2021. 

In later court documents, Bicknell acknowledged speaking to Horne before he’d been hired, though there were no details of what the conversation entailed.

Last fall, Edelman and Mariner filed motions to exclude expert testimony from the opposing side, and each filed an opposition to the summary judgment motions that both firms previously submitted. Monday’s decision saw Mariner’s motion granted and Edelman’s dismissed.