Wellington Management sued former client RJR Nabisco Inc. in Massachusetts federal court, seeking to block RJR from interfering with Wellington's attempts to enforce a noncompete contract with Arnold Schneider.
A Massachusetts judge determined in February that Mr. Schneider, a former Wellington portfolio manager who left to form Schneider Capital, violated his partnership agreement with Wellington. Mr. Schneider was ordered to give up three clients, RJR, Frank Russell Co. and Utah Retirement Systems. Frank Russell and Utah have sued Wellington, claiming Wellington's lawsuit against Mr. Schneider interfered with their allocation of pension fund assets.
RJR may be preparing a lawsuit against Wellington, according to Wellington attorneys. RJR officials could not be reached for comment.
Schneider Capital spokesman John Conlin said, ``Well, this is Marketing 101. If you want new clients, you don't sue the old ones.''