Cantor Fitzgerald LP and four managing directors sued by the firm after leaving to join China-backed investment bank Reorient Group Ltd. settled the case, according to a Hong Kong stock exchange filing.
Reorient said in the statement yesterday it was informed by Jason Boyer, Bradford Ainslie, Brett McGonegal and Uwe Parpart that Cantor won’t proceed with its planned appeal of a Hong Kong judgment that dismissed its claims. The company owns Reorient Financial Markets Ltd., the firm which the men joined.
The Europe and Hong Kong units of New York-based Cantor had sought HK$8.7 million ($1.1 million) in damages from the four executives, accusing them of breaching their employment contracts and causing a 29 percent drop in its average monthly revenue in the city.
Boyer, Ainslie and McGonegal of Cantor’s Asian cash equities desk, and Parpart, its former Asia chief economist and strategist, left for Reorient on the same day in 2011. The startup is backed by an asset manager under China’s state-owned Assets Supervision and Administration Commission and seeks to become a global investment bank, according to the former defendants.
Cantor had argued at trial that with all four leaving abruptly on the same day, there was no opportunity to train their replacements and the company had no way to mitigate damages resulting from their departure.
Sheryl Lee, a spokeswoman for Cantor in New York, didn’t immediately respond to messages seeking comment.
High Court Judge A.T. Reyes, in his February 2012 ruling, ordered the defendants to pay Cantor at least $1.3 million in total, mostly representing payments in lieu of notice. Cantor was ordered to pay most of the defendants’ legal fees. Cantor said the following month that it planned to appeal.