Willis Towers Watson has filed suit against Lockton after 18 of its employees resigned within 44 minutes on Aug. 19 and moved to the competing brokerage's office next door in Boston, allegedly taking clients that generated over $5 million in annual revenue for WTW. According to Boston.com, the workers left WTW's office at 125 High Street and began new careers at Lockton's office at 225 Franklin St., and WTW is concerned Lockton may pursue additional clients. WTW is seeking a temporary restraining order and a preliminary injunction to stop Lockton from servicing the accounts the employees took and from soliciting other clients or employees, calling the conduct "brazen, severe, and outrageous" and a "smash and grab" of its customers and staff. WTW claims the departing employees violated fiduciary duties, breached contracts, and violated non-solicitation and non-compete agreements, and that Lockton aided and abetted them. Employment attorneys told Moneywise that coordinated resignations are not inherently unlawful, and that the outcome will turn on whether the workers diverted business, used confidential information, or breached enforceable agreements, with state law varying on non-competes and non-solicitation clauses.
Willis Towers Watson PLC18 WTW employees defected to rival Lockton, allegedly taking clients worth over $5M in annual revenue, and WTW is suing to stop the client solicitation.
Lockton gained 18 brokers and allegedly $5M in client revenue from WTW, but faces a lawsuit, restraining order, and injunction over the defection.
