Ameriprise Financial Inc. has defeated a group of advisers who sought a class action alleging that, because the company recently changed its name, the power of its brand had been diminished.
On Aug. 26, Judge Joan N. Ericksen of the U.S. District Court for Minnesota dismissed the case, noting that Ameriprise Financial had no obligation to supply advisers with a well-recognized brand.
The suit by advisers seeking class-action status was filed last winter against the Minneapolis-based company, as well as its former parent, American Express Co. of New York.
It alleged that the two companies broke the franchise agreement by taking away the American Express Financial Advisors brand name. (InvestmentNews, February 25).
The plaintiffs — two advisers potentially representing the class in the lawsuit — were Judith Klosek and Linda Davenport.
Ms. Klosek and Ameriprise parted ways in February.
Ms. Davenport is still affiliated with Ameriprise and is based in Columbia, S.C.
She declined to comment on the decision.
Timothy J. Becker, an attorney in Minneapolis for the advisers, did not return a call asking for comment.
Ameriprise has about 12,000 advisers and reps across its various platforms, 7,500 of those being franchisees.
The firm spun off from its former parent American Express in October 2005.
The decision last month upheld another judge’s recommendation in June to dismiss the claim.
For the full report, see the Sept. 8 issue of InvestmentNews.
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