AGF Management Ltd. has launched a lawsuit against Dallas-based investment company, Westwood Holdings Group, Inc., its executive recruitment firm, and certain individuals including former AGF fund manager Patricia Perez-Coutts alleging they orchestrated an attempted unlawful “lift-out” of an entire team of investment managers in breach of their legal obligations.
AGF (TSX:AGF.B) Friday issued a statement of claim in the Ontario Superior Court of Justice, which alleges that the attempted unlawful lift-out was planned so as to inflict damage to AGF, while at the same time inappropriately rewarding certain ex employees, including Perez-Coutts.
None of the allegations has been proven.
Perez-Coutts left her position as senior vice president and portfolio manager at AGF back in May. She was manager of AGF’s emerging markets fund.
Perez-Coutts and other members of her team joined Westwood (NYSE:WHG), which announced on April 11 that it was expanding its range of investment strategies by adding global and emerging-markets equities. Those mandates were to be managed by Perez-Coutts and her team at Toronto-based Westwood International Advisors Inc.
“In our view, this action is about a breach of legal obligations involving ethically wrong behaviour by this U.S. investment company with full participation by individuals including Patricia Perez-Coutts, our ex fund manager,” said Blake Goldring, AGF chairman and CEO, in a release.
“This behaviour harms the entire industry and has serious implications on how investors view the financial services sector,” said Winthrop Smith Jr., lead director of AGF Management Ltd. “We are compelled to pursue our claim accordingly.”