Suit charges defendant is helping execs break non-compete agreements and then hiring them
Feb 26, 2016 @ 12:33 pm | By Bruce Kelly | Investment News
RCS Capital Corp. and its brokerage unit, Cetera Financial Group, are suing Lightyear Capital for raiding Cetera’s executive ranks and potentially harming its future prospects.
Lightyear and a Canadian pension fund, the Public Sector Pension Investment Board, last month announced it was acquiring the AIG Advisor Group from the giant insurance company, American International Group Inc.
In its lawsuit, RCS Capital, or RCAP, alleges that Lightyear is assisting Cetera executives in breaking non-compete agreements as they jump ship and move first to Lightyear and eventually to the Advisor Group when the transaction closes.