A Wisconsin-based advisory firm is suing two of its former advisors for leaving during an acquisition transition. The lawsuit underscores the thorny problem of holding RIA firms together during an era of consolidation.
Thun Financial Advisors, a Madison, Wisc.-based RIA, is suing advisors Richard Stanton “Stan” Farmer and Sylvain “Syl” Michelin, along with Walkner Condon Financial Advisors, their new firm, seeking monetary damages.
In a deal announced in July of this year, Thun, a $600 million AUM practice with 13 advisors specializing in serving U.S. citizens living abroad, was to be acquired by Overland Park, Kansas-based Creative Planning.
As part of the deal, Thun’s founder and owner, David Kuenzi, would remain in place, as would his team. The Thun branding was be maintained, and the business would serve as expat and cross-border investing specialists for Creative Planning.
Kuenzi told Financial Advisor that he has “no comment” on the matter in a Monday e-mail.
At the beginning of September, it was announced that two of Thun’s advisors who served $250 million in assets, Richard Stanton Farmer and Sylvain Michelin, would be joining Madison, Wisc.-based Walkner Condon as part of an international advisory services team.
Walkner Condon founder Clint Walkner said that his firm would not be commenting on the matter in an e-mail to Financial Advisor on Monday.
On September 9, Thun, along with Creative Planning, filed suit against the advisors and Walkner Condon in Milwaukee County Wisc. Creative Planning has since been removed from the suit as a plaintiff, according to attorney Seamus Smith, who represents Creative Planning.
“The matter at issue is really between Thun and two former employees and the employment agreements entered into between them,” wrote Smith in an email Monday. “Creative Planning’s initial inclusion in the action as a party was really the result of a miscommunication.“