November 2, 2018

Won TRO Against Former E*TRADE Employee

Payne & Fears LLP client E*TRADE was granted a temporary restraining order by the federal district court in Chicago, barring a former employee—a financial consultant—from using confidential information to solicit E*TRADE’s clients away from the provider and to her new employer, Morgan Stanley. 

In the case E*TRADE Financial Corp. v. Pospisil, evidence showed that the former employee accessed E*TRADE’s customer data shortly before she left the firm. The court deemed it reasonable to infer that she accessed it in order to use the information in her new job after leaving E*TRADE. It was discovered that the former employee had contacted E*TRADE clients, and at least four had transferred their business to Morgan Stanley. According to the court, it appeared undisputed that E*TRADE had taken reasonable measures to ensure the confidentiality of its customer information. E*TRADE also was likely to establish that it was irreparably harmed by the loss of client accounts and that without emergency injunctive relief, the former employee will continue to divert E*TRADE clients to Morgan Stanley.

E*TRADE was defended by Rod Sorensen, Rhianna Hughes, Alejandro Ruiz and Blake Dillion.

This case was also featured in the following publications: