Merrill Sues Deutsche Bank, Claims Hiring 'Raid'

Merrill Lynch, now part of Bank of America, has sued Deutsche Bank over the hiring of Merrill treasurer Eric Heaton and 11 bankers, in what it called a "raid."

The lawsuit, filed Tuesday in New York State Supreme Court in Manhattan, said Heaton failed to give a required six months notice before leaving, and violated a noncompetition agreement by joining Deutsche Bank.

It also accused Deutsche Bank of plotting to poach the bankers "many months in advance," in the effort to attract a group that had collectively "generated tens of millions of dollars in annual revenues for Merrill Lynch."

According to the lawsuit, the 12 employees all resigned on Feb. 3.

Deutsche Bank announced the hirings that afternoon, according to a statement from the German bank.

Deutsche Bank spokesman Scott Helfman had no immediate comment on the lawsuit.

Among other employees who left Merrill for Deutsche Bank were David Heaton, head of global asset management investment banking; Richard Slimmon, a senior banker in European financial institutions; and Richard Gibb, head of financial institutions in the Asia-Pacific and Australia regions.

Merrill is seeking an order to enforce Eric Heaton's contract, and also wants more than $100 million of compensatory damages as well as punitive damages.

Eric Heaton is also a named defendant.

The case is Merrill Lynch vs. Deutsche Bank, New York State Supreme Court (Manhattan), No. 600661/2009.

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