LPL Seeks Documents on Law Firm’s Alleged Conflict

LPL Financial and three former Raymond James advisors filed a complaint in a Florida federal court asking a judge to force law firm Shumaker Loop & Kendrick to turn over documents and to produce a representative at a pending FINRA arbitration.

The complaint names advisors Jared B. Roskelley, Kyle L. Robertson and Matthew J. Tinyo. It says Shumaker was recommended to the advisors by Ameriprise when they left Raymond James in October 2023 and that the advisors later joined LPL in early 2025.

According to the filing, Shumaker provided legal advice to the advisors when they joined Ameriprise but later represented Ameriprise in arbitration claims that LPL and the advisors improperly retained confidential client data during their subsequent moves. The complaint alleges Shumaker accepted Ameriprise’s engagement without addressing a conflict of interest or screening lawyers who previously advised the advisors.

The filing says a FINRA arbitration panel issued a subpoena for Shumaker to produce documents that could show whether Shumaker’s prior relationship with the advisors influenced Ameriprise’s claims. LPL and the advisors allege Shumaker has declined to comply with the subpoena and asked the federal court to order a Shumaker representative to appear at a Nov. 6 arbitration hearing with the subpoenaed materials.

The complaint describes legal guidance Shumaker gave when the advisors moved to Ameriprise, including advice on avoiding violations of the Broker Protocol and on storing client information in third-party databases not affiliated with a broker-dealer. The Broker Protocol is a voluntary industry agreement that generally limits departing advisors to taking client names, addresses, phone numbers, email addresses and account titles.

Ameriprise filed claims against LPL in July 2024 alleging broader transfers of client data, and the parties later agreed to resolve the dispute in arbitration. The complaint in federal court focuses on whether Ameriprise knowingly hired conflicted counsel and whether any prior Shumaker communications were used to shape Ameriprise’s allegations.

Industry advisers and lawyers cited in the filing urged advisors to confirm who represents them when a recruiting firm recommends counsel. Max Schatzow, founder of RIA Lawyers, cautioned that advisors often share detailed strategies and account facts with lawyers they assume represent them and that those communications are meant to remain privileged. Danny Sarch, president of recruiting firm Leitner Sarch Consultants, recommended getting written clarity on who pays for legal counsel and on who holds attorney-client privilege, and suggested hiring outside counsel experienced in wealth management when conflicts are likely.

Shumaker has faced similar accusations in prior recruitment disputes. In a 2021 case, two advisors who were recruited by Morgan Stanley sued Shumaker and later a FINRA arbitration panel ordered Morgan Stanley and the brokers to pay about $4.2 million in compensatory awards and fees to Schwab. The panel also ordered Morgan Stanley to pay $3.03 million in punitive damages and separate compensatory awards to the two advisors of roughly $2.85 million and $1.17 million, respectively.

LPL and Ameriprise declined to comment on the federal complaint. Shumaker Loop & Kendrick and lead lawyer Michael Taaffe did not respond to requests for comment, according to the filing.