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Arbitrator Vindicates Former Post Advisory Group Employees


Arbitrator Vindicates Former Post Advisory Group Employees

PR Newswire

LOS ANGELES, July 31, 2018 /PRNewswire/ -- An arbitrator ruled against Post Advisory Group, a subsidiary of Principal Financial Group (NASDAQ:PFG), on all causes of action brought against former employees Jeremy Sagi and Sanije Perrett, vindicating them completely, and on all causes of action brought against Lawrence Post, except claims relating to a non-compete. Arena Capital Advisors, the former employees' asset management firm which was originally named in the complaint, was dismissed a few months after the filing and was not a party to the case thereafter.

Post Advisory Group sought nearly $50 million in alleged damages in the case. The arbitrator rejected that claim and awarded just $2.5 million against Mr. Post, based on the theory that some of his friends followed his assets to Arena. Mr. Post has to pay some of Post Advisory Group's legal fees and costs and Post Advisory Group has to pay some of Mr. Sagi and Ms. Perrett's legal fees and costs. The former employees fully expect their insurer to reimburse them for their attorneys' fees and costs.

Rejecting the allegations made by Post Advisory Group, the arbitrator found that none of the former employees breached any fiduciary duty, misappropriated any confidential information or trade secrets nor violated any statutes. He decided that Mr. Post breached a non-compete clause from a 2003 contract that Mr. Post believed had been extinguished by his 2011 employment contract.   

Arena is a premier short duration high yield investment boutique. Arena believes the short duration high yield universe provides the best risk/reward opportunity in the public corporate debt market. Arena has the top two ranked investment strategies in eVestment for the short duration high yield universe (from inception four years ago to June 2018) significantly outperforming its competitors and  has ranked in the top decile of the overall high yield market. The annualized three year (ending 6/30/18) composite net returns for its Arena Short Duration High Yield Strategy were 6.86% and for its Arena Strategic Short Duration High Yield Strategy were 8.69%*. Arena's assets under management are over $1 billion and growing. 

*Investments in securities involve the risk of loss. Past performance is not a guarantee of future performance. Returns include the reinvestment of all income. Net performance is reduced by management fees and expenses and performance allocations (where applicable).

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SOURCE Arena Capital Advisors

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