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Edelman sues advisor for taking clients to $5bn RIA Farther

Andrew Foerch / Mar 06, 2025
John Carey is the latest ex-Edelman advisor to be sued for what the firm claims are breaches of contractual restrictive covenants.
Mega-RIA Edelman Financial Engines has sued another ex-advisor, this time filing a complaint in District Court of Travis County, Texas, against John Carey.
The lawsuit alleges Carey breached post-employment covenants in his contract after leaving Edelman in January to join Farther, a roughly $5bn technology-centric RIA backed by Google parent company Alphabet’s growth fund.
Carey joined Edelman predecessor Financial Engines through its acquisition of The Mutual Fund Store in 2015; he’d joined the Mutual Fund Store as a senior investment advisor based in Austin, Texas, two years prior. As of January, he managed roughly $112m for 260 clients, the complaint states.
Edelman said Carey’s employment contract with The Mutual Fund Store — which is included as an exhibit to the lawsuit — contained confidentiality and non-solicitation clauses in which he agreed not to ‘solicit, divert or take away’ Edelman clients for one year after his employment ended. He also agreed to maintain the confidentiality...
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