Wells Fargo (NYSE:WFC) Case with Raymond James (NYSE:RJF) Settled Over Broker Raids

Although bad blood continues to run between Wells Fargo (NYSE:WFC) and Raymond James (NYSE:RJF) over the alleged raiding of brokers from A.G. Edwards, they have finally settled in the battle, where Raymond James paid an unspecified amount in a confidential settlement between the two companies.

The reason A.G. Edwards is connected to Wells Fargo is Wachovia had acquired the company in 2007, and of course Wells Fargo ultimately acquired Wachovia, which brought the issue with them.

A Financial Industry Regulatory Authority arbitration panel found on behalf of Wells Fargo in the situation, and ordered Raymond James to pay Wells Fargo $10.5 million in damages, along with $1.5 million in legal fees.

In what Raymond James called a “shocking” ruling, they asked for a federal court to vacate the penalty, saying documents were withheld by Wells Fargo which would have proven Raymond James hadn’t taken the actions they were accused of.

Raymond James has maintained the financial advisers in question were looking at other job possibilities after Wachovia acquired them, which seemingly would have undermined the case of Wells Fargo that they had been raided.

A number of employees left four branches of A.G. Edwards not too long after they were bought by Wachovia, lending at least some credence to the story, although that is no longer relevant after the ruling and ultimate settlement between the two.

It seems Raymond James, after the arbitration ruling, was attempting to get the case retried, which under the Federal Arbitration Act isn’t allowed.

All of that evidently led to the settlement, which now effectively ends the case between them.