Salomon & Ludwin, LLC v. Jeremiah Winters

CourtCourt of Appeals for the Fourth Circuit
DecidedAugust 12, 2025
Docket24-1728
StatusPublished

This text of Salomon & Ludwin, LLC v. Jeremiah Winters (Salomon & Ludwin, LLC v. Jeremiah Winters) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Salomon & Ludwin, LLC v. Jeremiah Winters, (4th Cir. 2025).

Opinion

USCA4 Appeal: 24-1728 Doc: 57 Filed: 08/12/2025 Pg: 1 of 28

PUBLISHED

UNITED STATES COURT OF APPEALS FOR THE FOURTH CIRCUIT

No. 24-1728

SALOMON & LUDWIN, LLC,

Plaintiff – Appellee,

v.

JEREMIAH WINTERS; CATHERINE ATWOOD; JENNIFER THOMPSON; ABBEY SORENSEN; ALBERO ADVISORS, LLC, d/b/a Founders Grove Wealth Partners, LLC,

Defendants – Appellants.

Appeal from the United States District Court for the Eastern District of Virginia, at Richmond. Henry E. Hudson, Senior District Judge. (3:24-cv-00389-HEH)

Argued: May 9, 2025 Decided: August 12, 2025

Before QUATTLEBAUM, RUSHING and HEYTENS, Circuit Judges.

Affirmed in part and vacated in part by published opinion. Judge Quattlebaum wrote the opinion, in which Judge Rushing and Judge Heytens joined.

ARGUED: Henry Willett, III, CHRISTIAN & BARTON, LLP, Richmond, Virginia, for Appellants. Paul Anthony Werner, III, SHEPPARD MULLIN RICHTER & HAMPTON, LLP, Washington, D.C., for Appellee. ON BRIEF: Denise Giraudo, Imad Matini, Hannah Wigger, Christopher Bauer, Tifenn Drouaud, SHEPPARD MULLIN RICHTER & HAMPTON LLP, Washington, D.C., for Appellee. USCA4 Appeal: 24-1728 Doc: 57 Filed: 08/12/2025 Pg: 2 of 28

QUATTLEBAUM, Circuit Judge:

Several employees of a financial services firm left to start a competing firm and then

began contacting their former clients. But they had signed employment agreements with

the former employer prohibiting the solicitation of clients and use of confidential client

information. The former employees, however, thought they had an out. Their old firm, like

many in the financial services field, had agreed to an industry-wide protocol under which

their employees could join another firm and contact former clients if they followed certain

procedures. Unfortunately for the former employees, their employment agreements also

said their contractual non-solicitation and confidentiality obligations, not the protocol,

controlled.

The former firm sued its former employees and their newly created firm, and moved

for a preliminary injunction barring any contact between defendants and their former

clients and any use of the old firm’s confidential information. The district court granted the

injunction, finding that the former employer showed a strong likelihood of success on the

merits of its violation of trade secrets claims against all defendants whether the

employment agreements or the protocol controlled. According to the district court, even

under the protocol, defendants were not permitted to “raid” the former firm. For the reasons

set forth below, we agree the old firm is likely to succeed on the merits of those claims

against the former employees, but only under the employment agreements. The new firm

itself, however, is not a party to those agreements, nor did it raid the former firm as that

term is ordinarily understood. So, the district court erred in issuing an injunction against

the new firm. We therefore affirm in part and vacate in part.

2 USCA4 Appeal: 24-1728 Doc: 57 Filed: 08/12/2025 Pg: 3 of 28

I.

Formed in 2009, Salomon & Ludwin, LLC is a wealth management firm based in

Richmond, Virginia. Salomon hired Jeremiah Winters, Catherine Atwood, Jennifer

Thompson and Abbey Sorensen between 2009 and 2017. Winters and Atwood were

financial advisors, and Thompson and Sorensen were operational professionals.

All of Salomon’s employees generally have access to proprietary client information.

Salomon takes several steps to protect this proprietary information. Most significantly, it

requires financial advisors, like Winters and Atwood, to sign a Financial Services

Professional Employment Agreement. And it requires operational professionals, like

Thompson and Sorensen, to sign an Administrative Professional Employment Agreement.

Since the relevant provisions of both agreements are largely identical, we will use the term

“Agreement” to refer to both. Winters, Atwood, Thompson and Sorensen signed these

Agreements in March 2022.

The Agreements contain a number of provisions that protect Salomon. They provide

that Salomon has all rights to current and future clients of the firm as well as revenue

generated from those clients. The Agreements state that client information is a trade secret.

And they prohibit an employee from soliciting Salomon’s clients for two years after the

end of their employment.

On top of that, attached to each Agreement is a confidentiality agreement, which

prohibits an employee from disclosing Salomon’s trade secrets and client information. The

confidentiality agreement also states that Salomon will suffer irreparable harm in the event

of a breach of confidentiality.

3 USCA4 Appeal: 24-1728 Doc: 57 Filed: 08/12/2025 Pg: 4 of 28

Complicating these provisions, Salomon signed on to an industry-wide document

called the Protocol for Broker Recruiting. The Protocol is a separate voluntary agreement

among firms in the financial services industry that allows a departing financial advisor,

with written notice, to take certain client information with them when leaving one member-

firm to join another member-firm. It provides:

The principal goal of the following protocol is to further the clients’ interests of privacy and freedom of choice in connection with the movement of their Registered Representatives (“RRs”) between firms. If departing RRs and their new firm follow this protocol, neither the departing RR nor the firm that he or she joins would have any monetary or other liability to the firm that the RR left by reason of the RR taking the information identified below or the solicitation of the clients serviced by the RR at his or her prior firm, provided, however, that this protocol does not bar or otherwise affect the ability of the prior firm to bring an action against the new firm for “raiding.” The signatories to this protocol agree to implement and adhere to it in good faith.

J.A. 250. So long as a financial advisor complies, the Protocol shields both the departing

financial advisor and the new member-firm from liability.

Complicating things a bit more, the Agreements address the Protocol, stating that:

The parties to this agreement acknowledge that [Salomon] is not part of or subject to Broker Protocol. In the event [Salomon] elects to join the Broker Protocol, the parties further agree that this agreement shall take precedence over and shall apply, regardless of the terms of the Protocol for Broker Recruiting and that this agreement shall apply and control in the event that any term of this agreement conflicts with any term of the Protocol for Broker Recruiting.

J.A. 56, 71, 85, 99 (capitalization altered). But this provision appears outdated because

Salomon joined the Protocol in March 2018—long before Winters, Atwood, Thompson

and Sorensen executed these Agreements.

4 USCA4 Appeal: 24-1728 Doc: 57 Filed: 08/12/2025 Pg: 5 of 28

While still employed at Salomon in the spring of 2024, Winters, Atwood, Thompson

and Sorensen decided to leave Salomon and found their own firm. They set up a business

known as Albero Advisors, LLC. A month and a half later, they resigned from Salomon.

That same day, Albero Advisors joined the Protocol. According to Winters and Atwood,

their resignation letters listed the clients they served at Salomon, including client names,

addresses, phone numbers, email addresses and account titles, all in accordance with the

Protocol. At the same time, the departing employees began contacting Salomon’s clients,

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