LPL Financial has filed suit against Ameriprise Financial, accusing its rival of defamation and tortious interference after Ameriprise allegedly sent thousands of misleading data breach notices to clients whose advisors had previously transitioned to LPL.

AdvisorHub reports that the complaint alleges that Ameriprise issued notices falsely claiming that 30 independent advisors who left the firm between 2018 and 2020 took client information beyond what was permitted for transition purposes. According to LPL, those claims are false, but also intended to incite panic among clients and damage LPL's reputation in an ongoing recruiting battle. Ameriprise has defended the notices.

The core of the dispute centers on a now-discontinued "bulk upload tool" that LPL advisors use to transfer client data during transitions. LPL says it ceased using the tool and agreed in December to search its systems and the advisors' devices for any improperly retained data.

AdvisorHub adds that LPL is asking the court to bar Ameriprise from sending further notices and to compel the firm to provide a list of affected clients so LPL can contact them directly and confirm that their information remains secure.

Financial Advisor Transitions consults advisors nationwide to explore employment transition options and to preserve and protect their practice in any transition that they make.