Recently, there was a lawsuit against White Oak Global Advisors and its investment advisers for not being upfront with the risk of their investment strategies. And that is the very reason why White Oak Global Advisors is facing this lawsuit. If you haven’t caught up with this lawsuit yet and don’t know what the White Oak Global Advisors Lawsuit is then let’s rewind a bit and present the full picture in front of you. Here we go.
What Is White Oak Global Advisors?
White Oak Global Advisors, kicking off in 2007, is an asset management firm based in London, with branches in New York and Luxembourg. They focus on strategies like distressed debt, special situations, event-driven opportunities, and structured credit. Basically, to put it in the simplest words possible, they manage a mix of funds aiming for good returns by investing in various credit opportunities. The firm is led by co-founders Andrew Hawkins and Andrew Goulsbra, both seasoned financial experts who held senior roles at Lehman Brothers before starting White Oak.
What’s The White Oak Global Advisors Lawsuit Is All About?
The lawsuit against White Oak Global Advisors comes with some heavy accusations. According to the investor, the firm actually misrepresented the risks of their investment strategies and went on with it, without doing enough homework on investment opportunities. This means White Oak supposedly failed to thoroughly check if the companies they invested in could repay the loans or if the collateral was sufficient. On top of that, there are allegations of conflicts of interest and self-dealing, where White Oak might have put their interests ahead of their clients’. One big incident involved Russell Niemie, the former CIO of the New York State Nurses Association Pension Plan. It is on the record that he was accused of secretly negotiating a job with White Oak while still working for the pension plan, making undisclosed decisions that violated the Employee Retirement Income Security Act (ERISA).
Key Details That You Should Not Miss
The legal journey began when the New York State Nurses Association Pension Plan filed for arbitration against White Oak in July 2018. The arbitration centered on claims that White Oak violated ERISA by engaging in forbidden transactions and not acting in the best interests of its clients. And that’s one of the biggest claims in this lawsuit. The arbitrator ruled heavily against White Oak, ordering them to return around $96 million to the pension plan, plus 9% interest and attorneys’ fees. This was a big win for the pension plan, highlighting the seriousness of the allegations. The arbitration award was later confirmed by a U.S. District Court judge, reinforcing the decision.
The settlement between White Oak Global Advisors and the involved parties details how the compensation will be distributed. The agreement specifies the total compensation amount based on the damages and losses suffered by the investors due to White Oak’s alleged misconduct. It also outlines the timeline for disbursing payments to eligible claimants, ensuring prompt compensation. All in all, investors need to review their investment history with White Oak and meet the criteria outlined in the settlement agreement.
