Raymond James Financial Inc said on Tuesday that it has reached a settlement in a case with Wells Fargo (NYSE: WFC) relating to brokerage raiding.
Wells Fargo accused Raymond James of improperly poaching advisors of Wachovia, now owned by Wells Fargo, in September 2007. Initially, a Financial Industry Regulatory Authority arbitration panel in February imposed a $12 million fine on the company.
Raymond James Financial Inc filed a legal claim in U.S. federal court in Tampa, Florida to overturn the result of the award. The company accused Wells Fargo of acting fraudulent during the arbitration process by withholding key documents.
Wells Fargo responded to Raymond James’ claim on April 2nd, denying the claim and accused Raymond James of attempting to retry its case in the court room, which is prohibited under the Federal Arbitration Act.
The suit between the two companies centered around 20 AG Edwards advisors who signed on with Raymond James after Wachovia bought AG Edwards in 2007. The advisors had a combined $725 million in assets under their management according to court documents from Wells Fargo.
