Federal Judge Denies World Financial Group Restraining Order Against Former Leader Eric Olson

A federal judge in San Jose has denied World Financial Group's request for a temporary restraining order against Eric Olson, a longtime WFG leader, and his wife Sandra Olson, whom the company accused of raiding its insurance agents for a competing firm.

In an order dated February 22, 2024, U.S. District Judge Edward J. Davila of the Northern District of California found that WFG had not shown it was likely to succeed on its claims. The court ruled that the non-solicitation clause in WFG's associate agreement is likely void under California Business and Professions Code Section 16600, and that WFG's evidence was insufficient at this stage to show breaches of the agreement's confidentiality and non-disparagement provisions. Its tortious interference, civil conspiracy and unfair competition claims failed for the same reason.

WFG sued the Olsons in Santa Clara Superior Court on January 25, 2024, alleging breach of contract, misappropriation of confidential information and other claims, and Eric Olson removed the case to federal court the next day. According to the order, Eric Olson joined WFG in 2003 and built his Pinnacle Leadership Financial Agency to more than 20,000 agents, while Sandra Olson resigned in October 2023 and started Global Financial Impact. The Olsons filed their own suits against WFG.

The judge deferred ruling on WFG's request for expedited discovery and ordered the company to submit narrower proposed requests.