The verdict was given by Mrs Justice Cox at the Royal Courts of Justice this afternoon (14 February).

She said: “Having regard to the whole evidence in this case, the allegations against Raymond James do not withstand scrutiny.

“The identity of their financial adviser and the trust and loyalty towards someone with whom they had a close, personal and professional relationship was of paramount importance to many Edward Jones clients.

“In my judgment, Towry seriously underestimated the importance of these factors in this case.”

Towry, a wealth adviser firm, acquired Edward Jones in 2009 but several Edward Jones advisers then left to join Raymond James. They took with them a significant number of clients.

Towry took Raymond James and seven Raymond James advisers to court for breach of restrictive covenants, misuse of confidential information and conspiracy to injure Towry.

The trial took two months and involved over 40 witnesses.

Andrew Fisher, chief executive of Towry, said: “We are obviously disappointed that the court did not find in our favour. We did not undertake this action lightly but to protect our legitimate business interests for our clients and shareholders.”

Peter Moores, chief executive of Raymond James, said: “We are very pleased that the judgement handed down today dismissed the case against Raymond James and the seven advisers affiliated to us.”

He said the actions of Towry indicated that Towry felt client loyalty lay with the firm rather than the individual adviser.

“Both clients and financial advisers need to take a long hard look at the investment firms they choose to work with to see how they treat their advisers and their clients not just when they join or invest but also when they want to leave.”

It has been reported by Money Marketing that Towry has agreed to pay Raymond James' legal costs of £930,936 plus VAT.