Gallagher sues former brokers who left to start firm

Arthur J. Gallagher & Co. sued two former producers this week who left in May to start Cornerstone Risk Advisors.

In Arthur J. Gallagher & Co. v. James Baranello, Joseph Siringo, and Cornerstone Risk Advisors Inc., Gallagher alleges that the brokers breached their employment agreements by soliciting Gallagher clients before and after they left the firm.

When they joined Gallagher from USI Insurance Services in 2021, Mr. Baranello and Mr. Siringo signed agreements prohibiting them from sharing confidential information and soliciting Gallagher clients for two years if they left, the suit says.

The brokers abruptly resigned from Gallagher in May to establish Cornerstone and contacted the chief financial officer of their largest client before leaving, Gallagher alleges. Additionally, they sought to bring three construction-related Gallagher clients to their new firm, according to the complaint, filed Monday in federal court in New York.

“Rather than honor their non-solicitation obligations, Defendants: (1) immediately solicited a significant Gallagher client they were prohibited from soliciting; and (2) moved three other restricted accounts to a new brokerage they formed,” the suit says.

Gallagher is seeking injunctions against the two barring them from soliciting Gallagher clients and prospects, recruiting Gallagher employees and using the brokerage’s confidential information.

Cornerstone did not immediately respond to a request for comment.