The White Oak Global Advisors lawsuit involves multiple legal disputes filed in 2024. The most significant case concerns Isaac Soleimani’s $143 million equity buyout claim, which Delaware courts ruled in his favor. White Oak also faces ERISA violations regarding the New York State Nurses Association Pension Plan and ongoing guarantee enforcement litigation.
What Led to the White Oak Global Advisors Lawsuit
White Oak Global Advisors, a San Francisco-based private credit firm founded in 2007, has faced several high-profile legal challenges in 2024. These lawsuits expose critical issues about corporate governance, fiduciary duty, and contractual obligations in the investment industry.
The firm specializes in providing alternative credit solutions to middle-market businesses. With operations spanning healthcare, manufacturing, and technology sectors, White Oak manages billions in assets. However, this growth has come with legal complications that question how the firm handles employee equity, pension fund management, and loan guarantees.
Understanding these cases matters if you’re an investor, employee with equity stakes, or someone interested in financial industry accountability. The outcomes set important precedents for how investment firms must honor contractual obligations and fiduciary responsibilities.
The Soleimani Equity Buyout Case
Isaac Soleimani joined White Oak Healthcare Finance LLC as managing director in December 2015. His employment agreement included an 18% revenue sharing interest, later reduced to 16.8%. The contract specified he would receive fair market value for his stake upon termination.
White Oak terminated Soleimani’s employment in late 2023. The problem? They didn’t buy out his equity stake as required. Soleimani valued his ownership interest between $100 million and $143 million based on company performance and asset valuations.
He filed suit in Delaware Chancery Court claiming breach of contract. Vice Chancellor Lori W. Will ruled in Soleimani’s favor in April 2024. The court found White Oak could terminate employment for any reason but only after completing the required equity buyout.
White Oak appealed to the Delaware Supreme Court. In September 2024, Chief Justice Collins J. Seitz Jr. signed a one-page order upholding the lower court’s decision. This ended White Oak’s appeal options and established clear precedent: companies cannot bypass equity buyout provisions in operating agreements, even when terminating employees for cause.
The ruling creates significant financial obligations for White Oak. The company must now negotiate a fair market value buyout with Soleimani or face enforcement actions. Valuation disputes may continue as determining the worth of a private company stake involves complex financial analysis.
ERISA Violations and the Nurses Pension Plan
The New York State Nurses Association Pension Plan represents thousands of nurses across New York. In 2013, the Plan’s trustees hired White Oak to manage $80 million in pension assets under an investment management agreement.
The relationship soured when trustees discovered White Oak had interviewed Russell Niemie, the pension fund’s chief investment officer, for employment. White Oak conducted these discussions without notifying the pension board. Niemie recommended renewing White Oak’s contract one day after agreeing to meet about a job with the firm.
This created a conflict of interest that violated ERISA regulations. ERISA establishes strict standards for pension plan fiduciaries to act solely in participants’ best interests.
The trustees filed arbitration claims against White Oak in 2018. An arbitrator issued a Partial Final Award in November 2020, finding White Oak engaged in numerous prohibited transactions. White Oak had failed to return plan assets within 30 days of terminating the investment agreement as required. The firm also continued collecting management fees after retention of assets without authorization.
The arbitrator awarded the pension plan $96 million. This included disgorgement of improper fees, prejudgment interest at 9%, and return of initial “Day One” fees. White Oak paid this amount in August 2021.
White Oak challenged the award in federal court. The U.S. District Court for the Southern District of New York confirmed most of the arbitration decision in March 2022. White Oak appealed to the Second Circuit Court of Appeals.
In May 2024, the appellate court largely affirmed the core findings. The court upheld disgorgement of prejudgment interest and Day One fees. However, it remanded the profits portion for clarification and reversed the lower court’s award of attorney fees, finding insufficient justification.
The fundamental breach finding and bulk of the financial penalty stood. This case demonstrates the serious consequences when investment firms prioritize their interests over pension plan beneficiaries.
The Clarke Guarantee Enforcement Litigation
White Oak Global Advisors filed suit against Thomas M. Clarke, Ana Clarke, and David Wiley in 2024. The case involves personal guarantees exceeding $200 million for loans made to Epic Companies, which later filed for bankruptcy.
White Oak sought to enforce these guarantees after Epic defaulted. The guarantors argued that proceeds from selling Epic’s assets should reduce or eliminate their guaranteed debt obligations.
The U.S. District Court for the Southern District of New York initially found White Oak’s evidence didn’t conclusively establish liability. The court emphasized that if asset sale proceeds covered underlying loan obligations, the guarantors would no longer be liable.
In a July 2025 ruling, the court granted summary judgment in White Oak’s favor. The court awarded White Oak $20 million against both Thomas and Ana Clarke. This suggests discovery confirmed the defendants remained liable despite asset sales.
The case highlights the risks of providing personal guarantees for business loans. It also shows White Oak’s willingness to pursue aggressive collection actions when borrowers default.
The Scopetta Medical Practice Dispute
White Oak filed another lawsuit against George Scopetta, former president of Prime Plastic Surgery Management LLC. The dispute centers on a $10 million loan that Prime defaulted on.
White Oak sought recovery under Scopetta’s personal guarantee. Scopetta responded with a third-party complaint seeking indemnification from Prime under the company’s operating agreement.
The New York Supreme Court denied Prime’s motion to dismiss, allowing the case to proceed. This litigation demonstrates White Oak’s strategy of pursuing personal guarantees when borrowers cannot repay loans.
What These Lawsuits Mean for Investors
If you have money invested in White Oak funds, these legal challenges create several concerns. The Soleimani buyout could reach $143 million, potentially affecting fund performance depending on financing structure.
The ERISA violations damaged White Oak’s reputation for trustworthy pension management. Institutional investors may scrutinize the firm more carefully before committing capital.
You should review your fund documents for information about legal contingencies. Consider asking fund managers during investor calls how litigation impacts returns and operations.
The SEC requires investment advisors to disclose material legal proceedings. Check White Oak’s regulatory filings for updates on pending cases and their potential financial impact.
Lessons for Employees with Equity Stakes
The Soleimani case provides crucial lessons for employees negotiating equity compensation. Operating agreements must clearly define buyout procedures, valuation methods, and triggering events.
Document all communications about equity terms, company performance, and employment conditions. If disputes arise, contemporaneous records prove invaluable in court.
Review operating agreements carefully before signing. Consider hiring an attorney to explain provisions regarding termination and equity buyouts. The investment in legal advice pays off if disputes emerge later.
Delaware courts demonstrated they will enforce contract terms even when companies find them inconvenient. This protects employees who negotiate equity stakes as part of compensation packages.
Industry-Wide Implications
These lawsuits signal increased accountability for private credit firms. Courts are enforcing fiduciary standards strictly, particularly regarding pension fund management.
The ERISA case may prompt regulatory bodies to increase oversight of investment advisor conduct. The SEC and Department of Labor might conduct more frequent audits of firms managing retirement assets.
Other investment firms should review their operating agreements, equity compensation plans, and client relationships. The precedents set in these cases apply broadly across the industry.
Financial institutions must prioritize transparent communication with stakeholders. Conflicts of interest must be disclosed promptly. Self-dealing transactions violate ERISA and expose firms to significant liability.
Current Status and Future Developments
The Soleimani case concluded with Delaware Supreme Court affirmation. White Oak must now complete the equity buyout, though valuation negotiations may continue.
The ERISA litigation reached final resolution in 2024 after appellate proceedings. White Oak has paid the required amounts to the pension plan.
The Clarke guarantee case resulted in summary judgment for White Oak in July 2025. The defendants may appeal or face collection actions.
The Scopetta litigation remains pending in New York courts. The outcome will depend on factual findings about Prime’s obligations under its operating agreement.
Investors and industry observers should monitor White Oak’s regulatory filings for updates. These cases may influence how private credit firms structure future deals and employment agreements.
How to Protect Your Investment Interests
If you work with investment firms, take proactive steps to protect your interests. Request regular account statements and review them carefully for accuracy.
Ask questions about fee structures, investment strategies, and potential conflicts of interest. Legitimate firms welcome transparency and provide clear answers.
For pension plan trustees, conduct thorough due diligence before hiring investment managers. Verify the firm’s regulatory history and review any past legal disputes.
Include strong oversight provisions in investment management agreements. Require regular reporting, specify termination procedures, and establish clear fee limits.
Consider working with independent advisors who can provide objective analysis of investment managers’ performance and conduct.
What This Means Going Forward
The White Oak Global Advisors lawsuit demonstrates that courts will hold investment firms accountable for breaching fiduciary duties and contractual obligations. These cases establish precedents protecting employees, pension beneficiaries, and other stakeholders.
Private credit firms must implement robust compliance programs. This includes training employees on fiduciary responsibilities, establishing conflict-of-interest policies, and maintaining transparent communication with clients.
For investors, these cases underscore the importance of due diligence. Research firms’ legal history, review regulatory disclosures, and ask pointed questions about governance practices.
The financial industry benefits when courts enforce accountability standards. These lawsuits, while costly for White Oak, strengthen investor confidence in the broader market by demonstrating that firms cannot escape their legal obligations.
Key Takeaways
The White Oak Global Advisors lawsuit involves multiple legal disputes with significant financial and reputational consequences. Delaware courts ruled White Oak must pay up to $143 million for Isaac Soleimani’s equity stake after improperly terminating his employment.
The firm also violated ERISA regulations managing the New York State Nurses Association Pension Plan, resulting in a $96 million judgment. These cases establish important precedents for contractual obligations and fiduciary duty in the investment industry.
Next Steps: If you’re affected by these lawsuits or have concerns about investment manager conduct, consult an attorney specializing in securities law. Stay informed about ongoing developments by reviewing regulatory filings and court records.
