RCS Capital (RCAPQ) and Cetera Financial Group have reached a settlement with Lightyear Capital over the recruiting of executives by the private-equity group.
Last week, the parties ended a legal dispute tied to allegations that Lightyear had enticed senior officers to leave Cetera and join it, which RCAP said had threatened its bankruptcy proceedings and Cetera’s restructuring plans.
Two former Cetera executives now with Lightyear and its affiliates — Cynthia Hamel and Susan Theder — have agreed not perform work or services in ways that affect the Advisor Group’s competitive position vis-à-vis RCS Capital and Cetera through at least Sept. 4 and no later than Dec. 4.
Furthermore, Lightyear and its affiliates have agreed to not hire, employ or retain senior management of RCS-related companies through Sept. 26.
Lightyear and its affiliates, which sold Cetera to RCS Capital in $2014 for more than $1 billion, are in the process of buying the Advisor Group from AIG.