A tight labor market in the mutual fund industry is creating new business for courtroom lawyers - filing suit on behalf of money management firms to enforce the non-compete provisions in executives' employment agreements.
State Street Corp. of Boston, the parent company of State Street Global Advisors, has sued three former executives - two quantitative investment professionals and a top salesperson - who left SSgA earlier this month to join Deutsche Asset Management Americas of New York. (MFMN 9/13/99) State Street has asked a state court judge in Boston to enforce the so-called non-compete provision in the employees' contracts, a clause that State Street contends prohibits the employees from joining Deutsche. State Street filed the suit against Dean Barr, Joshua Feuerman and Richard Goldman on Sept. 3, according to court records. Deutsche announced it had hired the SSgA executives on Sept. 2.