Former Securities America CEO James Nagengast’s lawsuit against his former employer Osaic, focuses on allegations that broker/dealer refused to pay him what he believed he was owed concerning a private placement sale made to certain employees last year.
However, much of the complaint remains redacted, leaving the public in the dark about the details of the accusations contained in the suit.
Last week, Nagengast filed a complaint in Delaware federal court against Osaic and Artemis Holdings, the firm’s holding company, claiming a “breach of contract.”
However, he also called for the court to seal the complaint for the time being, arguing the allegations concerned confidentiality and separation agreements signed between Osaic and Nagengast that he still needed to uphold.
Nagengast left Osaic in early 2024, about six months after Osaic rebranded itself from Advisor Group and began rolling up its legacy broker/dealers, including Securities America.
According to court filings, Nagengast’s confidentiality agreement with Osaic required him to keep the terms under wraps. Still, his attorneys pledged that if the court granted the motion, Nagengast’s attorneys would file a public (albeit redacted) version of the complaint, which they did today.
Read the redacted lawsuit
The public complaint is heavily redacted, but some details are left readable. According to the complaint, Nagengast and Osaic entered a mutual separation agreement in March 2024, with Nagengast still holding Class B shares in Artemis.
According to the complaint, in 2024, Osaic and Artemis Holdings were parties to “at least one minority sale of Partnership Units,” including a private placement sale to “certain employees and/or registered representatives/agents of Osaic,” that closed last September.
But in late December, Nagengast learned about the minority sale. According to the suit, Osaic acknowledged the sale to him several days later but refused to pay Nagengast what he felt the firm owed him, opting to pay him a different sum on Jan. 9 (those dollar amounts and other details are redacted).
According to the complaint, Osaic hasn’t certified whether any other minority sales took place in 2024, and hasn’t paid him “the full payment due under the Separation Agreement,” though again, some details are redacted. Nagengast claims Osaic has breached its agreement with him by failing to pay him what he felt he was owed.
The monetary damage he intends to prove at trial is also redacted. He is also asking for attorney’s fees, costs, and expenses, pre- and post-judgment interest, and other relief the court sees fit.
Securities America was one of eight legacy b/ds rolled up into Osaic, which was expected to take up to two years. According to Osaic CEO Jamie Price, Securities America was fully integrated into Osaic as of last fall.
Representatives from Osaic declined to comment, saying the company does not comment on ongoing litigation.