Court Tosses United Capital Poaching Suit Against Osaic

A Delaware state court dismissed United Capital’s poaching lawsuit against Osaic but granted the Irving, Texas-based firm’s request to refile an amended complaint. “As currently drafted, this complaint leaves the Court grasping for factual handholds,” Judge Sheldon K. Rennie of the Superior Court of Delaware in Wilmington wrote in a ruling filed on Wednesday. Although the parties had not engaged in discovery and United Capital’s access to “internal facts” is limited, “a complaint still must contain sufficient foundational facts to support reasonable inferences,” Rennie wrote. The judge tossed the case without prejudice, meaning that United Capital can refile its claims in an amended complaint. In December, United Capital alleged that Osaic aided and abetted fraudulent concealment by convincing a group of three Ft. Lauderdale, Florida-based advisors to breach their employment contracts, take client information and improperly solicit customers during their 2023 move to the firm. United Capital claimed that clients with around $237 million in assets transferred to Osaic within four months of the brokers’ departures. Osaic in March filed a motion to dismiss the case, arguing that United Capital cannot meet even the “liberal” standards required by state law because it “relies on vague, conclusory assertions” that Osaic had encouraged a team to breach their employment agreements. Osaic had stated that United Capital’s complaint was “riddled” with allegations made without detail about how Osaic induced the team to leave or their departure resulted in injury. United Capital also in December 2025 filed a nearly identical suit against Apollon Wealth Management, a South Carolina-based RIA with around $7.7 billion under management, over allegations that it induced a group of Atlanta advisors to execute “an unlawful plan to steal United Capital’s business.” The firm claimed around $470 million in client assets left as a result. Apollon in March filed a brief asking the court to either dismiss the complaint or move the dispute to a different forum. Apollon alleged that United Capital’s argument “ignores that both parties lack any substantive connection to Delaware.” On June 16, Rennie, who also presides over that litigation, denied Apollon’s motion to dismiss. United Capital oversees around $17.2 billion in advisory assets, according to its Form ADV. It was acquired by Creative Planning from Goldman Sachs in August 2023. Creative Planning, which oversees around $370 billion, is majority owned by its Chief Executive Peter Mallouk and minority owned by private equity firm General Atlantic and alternative asset manager TPG Capital. Good for the court for seeing this for what it was- a frivolous case designed to harass advisors who left for a better firm. I bet Peter Mallouk is having a hissy fit now since his intimidation tactics that he had used for years against other advisors didn’t work here. And his little puppet Jim Rivers couldn’t do his master’s bidding.