Former Securities America CEO James Nagengast’s lawsuit in opposition to his former employer Osaic, focuses on allegations that dealer/supplier refused to pay him what he believed he was owed regarding a non-public placement sale made to sure staff final yr.
Nevertheless, a lot of the criticism stays redacted, leaving the general public at nighttime concerning the particulars of the accusations contained within the swimsuit.
Final week, Nagengast filed a criticism in Delaware federal courtroom in opposition to Osaic and Artemis Holdings, the agency’s holding firm, claiming a “breach of contract.”
Nevertheless, he additionally known as for the courtroom to seal the criticism in the meanwhile, arguing the allegations involved confidentiality and separation agreements signed between Osaic and Nagengast that he nonetheless wanted to uphold.
Nagengast left Osaic in early 2024, about six months after Osaic rebranded itself from Advisor Group and started rolling up its legacy dealer/sellers, together with Securities America.
Based on courtroom filings, Nagengast’s confidentiality settlement with Osaic required him to maintain the phrases underneath wraps. Nonetheless, his attorneys pledged that if the courtroom granted the movement, Nagengast’s attorneys would file a public (albeit redacted) model of the criticism, which they did at the moment.
Learn the redacted lawsuit
The general public criticism is closely redacted, however some particulars are left readable. Based on the criticism, Nagengast and Osaic entered a mutual separation settlement in March 2024, with Nagengast nonetheless holding Class B shares in Artemis.
Based on the criticism, in 2024, Osaic and Artemis Holdings have been events to “at the least one minority sale of Partnership Items,” together with a non-public placement sale to “sure staff and/or registered representatives/brokers of Osaic,” that closed final September.
However in late December, Nagengast realized concerning the minority sale. Based on the swimsuit, Osaic acknowledged the sale to him a number of days later however refused to pay Nagengast what he felt the agency owed him, opting to pay him a distinct sum on Jan. 9 (these greenback quantities and different particulars are redacted).
Based on the criticism, Osaic hasn’t licensed whether or not another minority gross sales happened in 2024, and hasn’t paid him “the complete cost due underneath the Separation Settlement,” although once more, some particulars are redacted. Nagengast claims Osaic has breached its settlement with him by failing to pay him what he felt he was owed.
The financial injury he intends to show at trial can also be redacted. He’s additionally asking for lawyer’s charges, prices, and bills, pre- and post-judgment curiosity, and different reduction the courtroom sees match.
Securities America was certainly one of eight legacy b/ds rolled up into Osaic, which was anticipated to take as much as two years. Based on Osaic CEO Jamie Value, Securities America was totally built-in into Osaic as of final fall.
Representatives from Osaic declined to remark, saying the corporate doesn’t touch upon ongoing litigation.