The Louisiana Record Apr. 27, 2016, 2:55pm


BATON ROUGE — Charles Schwab is suing a former employee, alleging he failed to comply with confidentiality and non-solicitation agreements.

Charles Schwab & Co. Inc. filed a lawsuit April 13 in U.S. District Court for the Middle District of Louisiana against Donald Newton of Baton Rouge, alleging breach of agreement, unfair competition and misappropriation of trade secrets.

According to the complaint, Schwab will be irreparably harmed, unless Newton is preliminarily enjoined from retaining and using Schwab's confidential and trade secret information. The suit says the plaintiff will also suffer loss of confidentiality of information, loss of confidence and trust of clients, loss of goodwill and loss of business reputation. 

Schwab alleges Newton used customer information, including their identities, names, addresses, contact details and any account or financial information, and solicited or induced clients to divert, transfer or otherwise take away the plaintiff's business. The lawsuit states Newton immediately contacted a Schwab client and informed them he is no longer connected with Schwab and that he was negotiating employment with a new financial services company.

Charles Schwab seeks a trial by jury, judgment enjoining Newton from using, disclosing, or transmitting any information contained in its records and from soliciting any business from any of its client, an order for both parties to proceed with an expedited arbitration and any other relief the court deems proper. It is represented by attorneys Edward F. Harold of New Orleans, and Michael R. Greco of Denver.

U.S. District Court for the Middle District of Louisiana Case number 3:16-cv-00236

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U.S. District Court for the Middle District of Louisiana
777 Florida Street
Baton Rouge, LA 70801

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