Marco Consulting Group (MCG) has reached amicable terms with its former President Ian Jones and his new employer Morgan Stanley.
The details of those terms are “confidential,” however, MCG said in a recent announcement.
Previously, on April 25, Marco disclosed in a federal suit that Jones’ April 21 decision to join Graystone Consulting, a subsidiary of Morgan Stanley, and focus on the Taft-Hartley pension market from its Buffalo, N.Y. office allegedly impeded on a contract he signed with the Chicago-based firm to “not solicit or service his clients for two years after his departure,” MCG Chairman and Co-Founder Jack Marco said at the time.
While the terms of the new settlement agreement were not disclosed, the firm said that “in return for a significant cash payment, MCG has agreed that…[Graystone] can compete for MCG’s current clients.”As previously reported by IMMP, the firm was seeking an injunctive relief and monetary damages of $75,000, this according to the federal filing.
In the updated federal docket, District Judge John Darrah was said to have heard the two parties report a settlement in “open Court” following a preliminary May 12 injunction hearing, which was “vacated.”
A status hearing is set for May 26, the filing stated.
In its May 13 announcement, Marco reported that it has been able “to settle the litigation” thanks to receiving support from ALF-CIO President Richard Trumka, and seven international unions in the service, food, electrical, mine, bakery, tobacco and grain industries.
“We sued to vindicate the restrict covenants we have with our key employees and we are very satisfied the settlement has achieved that overwhelmingly,” Marco said in the announcement.
As a response, Christine Pollak, executive director of corporate communications for Morgan Stanley Smith Barney, disclosed in company statement that it has “considered Marco's claims to be meritless,” while specifically noting Marco’s decision to “quickly settle” after Morgan Stanley filed its response “speaks for itself.”
Moving forward, the company and Jones listed that they look forward to “continuing to help his clients [in the union marketplace and at Taft-Hartley plans] meet their financial goals.”
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