FDD Items 3 & 4 · 2026 filing

Ameriprise Financial Services, LLC Independent Advisor Business litigation history

What Ameriprise Financial Services, LLC Independent Advisor Business disclosed about lawsuits, arbitrations and bankruptcy in the 2026 Franchise Disclosure Document. Item 3 lists the material legal actions a franchisor must report; Item 4 covers bankruptcy. This is the franchisor's own disclosure, not a court record, and not legal advice.

Items 3 (litigation) & 4 (bankruptcy) at a glance

What the filing discloses

Cases disclosed: 11; Item 3, as counted in the filing

Largest settlement, franchisor's own cases: $6.3M; As stated in Item 3

Bankruptcy (Item 4): None; Franchisor, parent, predecessor or officer

Filing year: 2026; Disclosures cover the prior ten years

Extracted from the 2026 Franchise Disclosure Document

Item 3: litigation

Franchisor is defendant in multiple pending matters including cash sweep class actions (Mehlman/Tripson consolidated), FINRA arbitrations by current/former advisors (Mattson), collection matters (Urban), recruiting-related cases (Oppenheimer, Edward Jones). Past SEC/FINRA settlements: $4.5M (2018 safeguarding), $8.75M total disgorgement+penalty (2017 F-Squared), $850K fine (2016 FINRA wire transfer). Field sales force and advisor client litigation of 5-60 matters/year disclosed as routine.

Item 3 (litigation) · 11 matters disclosed · 6 pending listed

Litigation cases

The franchisor

Pending (6)

Elizabeth Ann Warner v. Ameriprise Financial Services, LLC
pending
filed 2025-03-28 · FINRA arbitration · 25-00625
“… FINRA case no. 25-00625, filed on March 28, 2025. Claimant alleges she was recommended the following unsuitable investments: eleven annuities; four variable universal life insurance policies; and three illiquid investments that include two non-traded REITs”Page 15 of the 2026 FDD, Item 3
Outcome: “A FINRA arbitration hearing is scheduled to begin April 27, 2026. B.”
Oppenheimer & Co. Inc. v. Ameriprise Financial Services, LLC, Logan W. Shalmi, Andrew M. Lerner, Mark E. Zuckerman, Lance P. Ross, Hector G. Aguilar, John J. Pescatore, Stephen A. Jaffe and Charles M. Shalmi
pending
filed 2025-12-23 · FINRA arbitration · 25-02828
“… FINRA Case 25-02828, filed on December 23, 2025. Claimant alleges Ameriprise orchestrated a raid of its Boca Raton, Florida branch office”Page 17 of the 2026 FDD, Item 3
Outcome: “Claimant seeks a permanent injunction and damages of $45m. Ameriprise’s Answer to the Statement of Claim is due February 12, 2026.”
Susanne Mehlman, Joy Hultman, Mindy Bender and Robert Sullivan, Individually and on Behalf of All Others Similarly Situated v. Ameriprise Financial Services, LLC, et al.
pending
Brought by a third party · filed 2024-07-30 · U.S. District Court for the District of Minnesota · 2:24-CV-03018-JRT-DLM
“… Case No. 2:24-CV-03018-JRT-DLM, filed in the U.S. District Court for the District of Minnesota on July 30, 2024.”Page 15 of the 2026 FDD, Item 3
Outcome: “On August 19, 2025, the court granted Ameriprise’s motion to compel the investment advisory claims to arbitration and granted Ameriprise’s motion to dismiss the fiduciary duty claim. The court denied Ameriprise’s motion to dismiss the claims of breach of contract, breach of implied covenant of good faith and fair dealing and unjust enrichment. The parties are engaged in discovery.”
Within this matter, as the filing narrates it
- Frank R. Tripson, Individually and on Behalf of All Others Similarly Situated v. Ameriprise Financial Services, LLC., et al.
  pending
  Brought by a third party · names the franchisor · filed 2024-12-31 · U.S. District Court for the District of Minnesota · 0:24-CV-04669
  “… Case No. 0:24-CV- 04669, filed in the U.S. District Court for the District of Minnesota on December 31, 2024.”Page 15 of the 2026 FDD, Item 3
  Outcome: “The Tripson case was consolidated with the Mehlman case on January 22, 2025. O”
Counted as one matter, the way Item 3 groups it.
Edward D. Jones & Co, LP v. Cory Clem and Ameriprise Financial Services, LLC
pending
filed 2023-01-26 · FINRA arbitration · 23-0028
“… FINRA Case 23-0028, filed on January 26, 2023. Claimant alleges Clem took confidential and trade secret information when he left Edward Jones and that Ameriprise assisted in the activity.”Page 17 of the 2026 FDD, Item 3
Outcome: “The second week of the FINRA arbitration hearing is scheduled for April 6-10, 2026. B.”
James Theodore Mattson and James Earl Mattson v. Ameriprise Financial Services, LLC, et al.
pending
Brought by a franchisee · filed 2023-10-30 · FINRA arbitration · 23-03152
“… FINRA Case No. 23-03152, filed on October 30, 2023. Claimants are former Ameriprise advisors who allege Respondent advisors poached their customers and violated FINRA rules, MN law and Ameriprise policy.”Page 16 of the 2026 FDD, Item 3
Outcome: “On June 11, 2025, the arbitration panel denied the Claimants’ claims in their entirety. On July 18, 2025, the Mattsons filed a petition to vacate the award, which was denied on November 18, 2025. The Mattsons then filed an appeal of the decision on December 19, 2025, which remains pending.”
Ameriprise Financial Services, LLC v. Robert William Urban v. Clayton Harrison
pending
Brought against a franchisee · filed 2022-12-06 · FINRA arbitration · 22-02783
“… FINRA Case No. 22-02783, filed on December 6, 2022. Claimant’s statement of claim against Respondent Urban, a former franchisee, includes: breach of transition note, breach of working capital note and loan agreement”Page 16 of the 2026 FDD, Item 3
Outcome: “Total outstanding note debt in the statement of claim is $684,955.62. Respondent Urban filed a counterclaim alleging: breach of contract, negligent misrepresentation, prima facie tort and punitive damages in the amount of $500,000. This case is pending FINRA arbitration currently scheduled for June 10-12, 2026.”

Concluded (5)

Ameriprise Financial Services, LLC v Drew Matthew Peacock
judgment
Brought against a franchisee · filed 2025-01-31 · FINRA arbitration · 25-00057
“… FINRA Case No. 25-00057, filed on January 31, 2025. Claimant’s statement of claim against Respondent Peacock, a former franchisee, includes breach of”Page 16 of the 2026 FDD, Item 3
Outcome: “Total outstanding note debt in the statement of claim is $108,997.67. An award has been issued by FINRA in favor of Ameriprise in the amount of $165,562.49.” (page 17)
Ted Lourenco, Individually and On Behalf of All Others Similarly Situated v. Ameriprise Financial Services, LLC, et al.
dismissed
Brought by a third party · filed 2024-10-14 · U.S. District Court for the Central District of California · 24-CV-08825-MRA-KS
“… Case No. 24-CV-08825-MRA-KS, filed in the U.S. District Court for the Central District of California on October 14, 2024.”Page 15 of the 2026 FDD, Item 3
Outcome: “Lourenco voluntarily dismissed his claims on May 8, 2025. Th”
SEC settlement reached in August 2018 - failure to adopt and implement policies to safeguard retail investor assets against misappropriation and failure to supervise five representatives (no case caption is printed)
settled
Government or regulatory action · filed 2018 · U.S. Securities and Exchange Commission
“In August 2018, Ameriprise Financial reached a settlement with the SEC regarding allegations that from 2011 through 2014 the firm failed to adopt and implement policies and procedures reasonably designed to safeguard retail investor assets against misappropriation and failed to reasonably supervise five representatives”Page 17 of the 2026 FDD, Item 3
Outcome: “The firm agreed to pay a civil penalty amount of $4.5 million. The firm further reimbursed all impacted clients for the losses they incurred due to the misconduct.”
SEC settlement reached in December 2017 - negligent reliance on F-Squared Investments, Inc. misrepresentations about ETF portfolios and false statements in advertisements (no case caption is printed)
settled
Government or regulatory action · filed 2017 · U.S. Securities and Exchange Commission
“In December 2017, Ameriprise Financial reached a settlement with the SEC regarding allegations that from December 2010 through October 2013, the firm negligently relied on misrepresentations made by F-Squared Investments, Inc. regarding certain of its ETF portfolios, and as a result, the firm made false statements about the portfolios in certain advertisements.”Page 18 of the 2026 FDD, Item 3
Outcome: “The firm agreed to pay a disgorgement amount of $6.3 million plus prejudgment interest of $700,000 and a civil penalty amount of $1.75 million.”
FINRA settlement reached in September 2016 - failure to detect and prevent wire transfers from five customers to one of the firm's registered representatives (no case caption is printed)
settled
Government or regulatory action · filed 2016 · Financial Industry Regulatory Authority (FINRA)
“In September 2016, Ameriprise Financial reached a settlement with FINRA regarding allegations that between October 2011 and September 2013, the firm failed to detect and prevent wire transfers from five of its customers to one of its registered representatives.”Page 18 of the 2026 FDD, Item 3
Outcome: “The firm paid restitution plus interest to the impacted customers and a fine of $850,000. B.”

One proceeding above is indented under the matter it belongs to because the filing narrates them inside it — an appeal, a consolidated case, a related arbitration. Each carries its own quote and page. They are counted with their matter, not as extra matters, so this list and the 11 Item 3 discloses agree.

Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.

Disclosure signals that moved the score

How this shows up in the verdict

Six active litigation matters including class action, FINRA arbitration, and three regulatory settlements indicate systemic compliance failures in supervision and advertising
Recent SEC/FINRA settlements indicate franchisor's own regulatory compliance deficiencies that cascade to franchisees

The verdict grade is FranchiseVerdict's editorial assessment across SBA loan performance, unit growth, revenue and disclosure signals. It is not investment advice.

Before you weigh a lawsuit

How to read Item 3

A franchisor must disclose pending actions and any material civil action involving the franchise relationship, plus convictions or civil judgments for fraud, unfair or deceptive practices, or franchise-law violations, going back ten years. A case the franchisor brought against a franchisee counts too. Item 3 does not include every dispute: settled claims below the materiality line and matters resolved in private arbitration can be absent.

Questions worth asking current and former franchisees, using the contact list in Item 20:

Were you, or anyone you know in the system, party to a dispute with the franchisor?
Was it resolved by settlement, arbitration or a court, and on what terms?
Has the number of disputes gone up or down since you signed?

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