Kelcey Caulder
December 26, 2025
Merrill Lynch Raid Suit Paused For FINRA Arbitration
3 min
AI-made summary
- A Georgia federal judge has stayed Merrill Lynch's lawsuit against Dynasty Financial Partners, Charles Schwab, and former employees, which alleges they conspired to form a competing firm using Merrill's staff and confidential information
- The stay will remain in place pending arbitration before a FINRA panel
- The judge previously denied Merrill's request for a temporary restraining order, citing insufficient evidence of irreparable harm or protocol violations, and deferred expedited discovery to the arbitration process.
A Georgia federal judge stayed Merrill Lynch's case alleging Dynasty Financial Partners, Charles Schwab and a dozen former employees conspired to start a new firm with Merrill's staff and confidential information one day after denying the company's bid for an injunction.
In an order on Wednesday, U.S. District Judge Victoria M. Calvert stayed the case pending the completion of arbitration proceedings before a Financial Industry Regulatory Authority panel. The order comes one day after Judge Calvert, ruling from the bench, denied Merrill's motion for a temporary restraining order that would have prevented more employees from joining the new firm.
In issuing that denial, Judge Calvert said Merrill had not presented enough evidence to show it would be irreparably harmed absent an injunction, that the solicitation of employees it alleged actually took place or that what is known as "the protocol" — an agreement for how client data can be handled when a financial adviser moves between firms — was violated.
Merrill had also requested expedited discovery, but Judge Calvert said Tuesday that she thought that would be best left up to FINRA, noting that all parties agreed the agency was best suited to handle the dispute.
In its complaint, Merrill alleged it was suing to stop a "pre-meditated corporate raid" of its Atlanta-based global corporate and institutional advisory services business, which provides a range of financial services to "ultra-high net worth individuals," large businesses and institutional investors.
The firm accused the defendants of improperly soliciting 170 financial advisers and support staff assigned to its global corporate and institutional advisory services, or GCIAS, business to work for a competing entity affiliated with Schwab and Dynasty called OpenArc Corporate Advisory. Merrill also alleged former employees used confidential client lists, financial strategies and other trade secrets to solicit business and support staff.
An attorney for Merrill alleged the actions were part of an "unprecedented" and huge corporate raid.
Attorneys for OpenArc, the former Merrill employees, Dynasty and Schwab all argued during Tuesday's hearing that there was no evidence of Merrill's claims and that it was instead engaging in "speculation" about what it believed happened.
The launch of OpenArc was announced last week in a press release saying it was already one of the largest independent firms in the corporate benefits and private wealth sectors. The release said OpenArc had received a capital investment from Dynasty and that the new company would introduce a "new model that integrates corporate benefits, executive services, and private wealth management — delivered through a high-touch, open architecture platform."
OpenArc will be helped by "Charles Schwab's broad capabilities and Dynasty Financial Partners' advanced tech platform," according to the release.
Merrill Lynch is represented by Tala Amirfazli of Burr & Forman LLP, Rachael L. Carp, Christopher S. Koller and Benjamin S. Levine of Rubin Fortunato & Harbison PC.
The former Merrill employees and OpenArc are represented by Charles A. Wood Jr., C. Jade Davis, Jarrod J. Malone, Michael D. Bressan and Michael S. Taaffe of Shumaker Loop & Kendrick LLP, and Joseph B. Alonso of Alonso & Wirth Law LLC.
Dynasty is represented by Barry R. Lax, Matthew C. Plant and Robert R. Miller of Lax Neville & Intelisano LLP, and Benjamin B. Watson and Joshua P. Gunnemann of Councill Gunnemann & Chally LLC.
Schwab is represented by Faith Gay and Joshua S. Margolin of Selendy Gay PLLC, and Michael P. Elkon of Fisher Phillips.
The case is Merrill Lynch Pierce Fenner & Smith Inc. v. Bjerke et al., case number 1:25-cv-05437, in U.S. District Court for the Northern District of Georgia.
Article Author
Kelcey Caulder
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