The US parent company of Gallagher Employee Benefits has begun legal proceedings against former Oval advisers following disputes over client servicing rights.
Arthur J Gallagher acquired Oval for £199m in April. The legal challenges against some former Oval advisers began ahead of the deal earlier this year but Arthur J Gallagher is now bringing the claim.
Lawyers Ward Hadaway have been instructed to bring proceedings, which hinge on alleged breaches of restrictive covenants designed to prevent former Oval advisers taking clients after leaving the firm.
Arthur J Gallagher declines to comment on the number of proceedings issued or the amount being claimed for. It says in a statement: “Arthur J Gallagher takes very seriously any unjustified attempts from current or former employees or third parties to destabilise our client base or our workforce and has initiated legal action to protect its position against suspected activities of this nature.”
Oval is predominantly a commercial insurance brokering business but includes a financial planning business, Oval Financial Services.
Money Marketing understands Oval had hoped to sell the businesses separately but both were included in the deal with Gallagher.
Following the acquisition, a number of senior management staff are understood to have left the business with some engaged in ongoing disputes over the terms of their departure.