Putnam Loses A Round in Fight Over Defectors

A judge in Massachusetts has denied Putnam Investments' request for a preliminary injunction against four executives who left the mutual fund company for rival Liberty Financial Cos.

Judge James McHugh of Middlesex Superior Court ruled that Putnam had yet to prove that Stephen Gibson, James Tambone, Louis Tasiopoulos, and Kevin O'Shea violated nonsolicitation agreements.

In court documents, Putnam wrote that it believed the executives had forfeited their right to receive money from incentive compensation plans.

"We intend to pursue this and expect to be successful when all the facts are out," said a Putnam spokeswoman.

Putnam can either appeal the decision or choose to bring the case to trial.

Both companies are based in Boston and manage mutual funds that they sell through banks, financial planners, and brokerages.

The loss of Mr. Tasiopoulos, who oversaw sales through financial institutions, was a blow to the Putnam. For several years Putnam has been the leading seller of mutual funds through financial institutions.

Mr. Gibson, president and chief executive officer of Colonial Group Inc., a Liberty subsidiary, changed companies last summer. At Putnam he was managing director, product development.

The other three executives, who were employed by Putnam as sales executives promoting mutual funds to financial intermediaries, joined Liberty in January.

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER