Registered funding advisor Choreo has filed a lawsuit in opposition to Compound Planning on the heels of the registered funding advisor asserting that former Choreo advisors joined to seed a brand new workplace in Des Moines, Iowa.
On Tuesday, New York-based household workplace Compound touted its addition of a four-person workforce that had overseen $1.2 billion in belongings with Aaron Schomer, Joleen Scheer, Lindsey O’Neil and Kevin Lors. On Wednesday, Choreo responded with a lawsuit in opposition to Compound and the advisors within the U.S. District Court docket for the Southern District of Iowa Central Division.
Within the lawsuit, Chicago-based Choreo alleges the advisors breached buyer non-solicitation agreements and their fiduciary responsibility to Choreo by coordinating their exit and offering info reminiscent of the quantity of shopper belongings they oversaw on the agency.
“Since leaving Choreo on February 27, 2025, the person defendants have, on info and perception, been speaking with lined purchasers about their departure from Choreo and their new employment with Compound Planning,” the plaintiffs wrote within the lawsuit. “The person defendants’ actions are designed to solicit lined purchasers to discontinue their work with Choreo and begin working with the person defendants at Compound Planning.”
Choreo alleges within the criticism that three enterprise days after the departure, 4 purchasers gave discover that they have been terminating with the agency—with one shopper explicitly noting they’d be leaving for Compound. It additionally referred to LinkedIn posts the advisors made directed at former purchasers.
“[I]n their respective LinkedIn posts asserting their new employment with Compound, the person defendants invited folks of their community to attach with them by offering their Compound e mail handle and/or a direct hyperlink to their calendars,” the plaintiffs wrote.
As well as, Choreo claims that the advisors breached their employment and fiduciary obligations to the agency by planning to depart collectively in an orchestrated breakaway.
“By soliciting and inspiring one another to depart Choreo in favor of one other employer, the person defendants acted in their very own self-interest, and in Compound’s curiosity somewhat than the very best curiosity of Choreo,” the plaintiffs wrote. “In doing so, the person defendants breached their fiduciary duties of loyalty to Choreo.”
Compound and the advisors are refuting the allegations and plan to file a response in court docket.
“The advisors adamantly deny the allegations contained within the criticism, which is Choreo’s model of the occasions on this matter,” Michael Ward, associate at Barton, representing Compound and the advisors, stated through e mail. “Whereas I can’t provide many particulars given the case is ongoing, I can let you know that the general public coverage is in favor of shopper alternative and the general public will see a response to the criticism on the applicable time.”
On the finish of January, Compound had greater than $3 billion in belongings underneath administration, excluding the belongings of the brand new advisors.
Choreo, which oversees $24.6 billion in shopper belongings, is looking for damages from the advisors, together with disgorgement of the wage they have been paid whereas in alleged breach of fiduciary duties and different punitive damages to be decided at trial. Compound is looking for compensatory and punitive damages to be awarded at trial and another reduction that the court docket deems applicable.
“Whereas no agency needs to take this sort of motion, the alternatives of the departed advisors and their new employer compelled us to guard Choreo and our purchasers,” a Choreo spokesperson stated through e mail. “We’re assured in our place and look ahead to addressing these points by way of the authorized course of.”
Choreo is being represented by Des Moines, Iowa-based Nyemaster Goode P.C. and Chicago-based Vedder Value P.C.
Choreo has greater than doubled its shopper belongings during the last three years, partially attributable to natural development since its creation in 2022 and its personal acquisitions.
