ClariVest Asset Management and Nicholas-Applegate Capital Management reached a settlement of a civil suit that has dragged on for more than two years, officials from both firms confirmed.
Details of the settlement were confidential; Sue Hunter, spokeswoman at Nicholas-Applegate, would not provide details of the settlement. Stacey Nutt, ClariVest president and CIO, said ClariVest will continue to be profitable and will have no post-settlement debt, and there will be no restrictions or changes in how the firm operates. He declined to provide further details.
The founding partners at ClariVest left Nicholas-Applegate in 2006 because of an ongoing compensation dispute and formed ClariVest. At the time, Mr. Nutt told Pensions & Investments he had spent over a year trying to hammer out an appropriate compensation package for his team, while Ms. Hunter had said previously that an agreement had been reached.
In March 2006, Nicholas-Applegate officials initiated arbitration proceedings against their former employees, and a month later, Mr. Nutt and other founding principals at ClariVest responded by filing a suit against NACM for events surrounding their termination; they were fired when NACM officials found out they were planning to quit to form ClariVest, NACM officials told P&I at the time. A series of suits and countersuits have been filed in subsequent years.
The settlement was reached Sept.18. California Superior Court Judge Judith Hayes in San Diego is scheduled to officially dismiss the case in early November.