nCino under federal investigation over hiring practices, SEC filing indicates

nCino under federal investigation over hiring practices, SEC filing indicates
nCino, a Wilmington-based cloud bank software company. (Source: WECT)

WILMINGTON, N.C. (WECT) - nCino, a Wilmington-based company that provides cloud-based banking software for financial institutions, is under federal investigation over possible antitrust violations with regards to the company’s hiring practices.

In a Feb. 24 filing with the U.S. Securities and Exchange Commission, nCino stated that the company and an unspecified number of its officers were “served with grand jury subpoenas wherein the Antitrust Division of the Department of Justice is seeking documents and information in connection with an investigation of the Company’s hiring and wage practices.”

The filing noted that the company previously received a letter from a law firm representing an individual “seeking to resolve potential civil antitrust claims against the [nCino] and Live Oak Bank, a business based in Wilmington, North Carolina, relating to an alleged unlawful agreement not to solicit or hire certain employees.”

According to the filing, nCino is “fully cooperating with the authorities.”

“Although there can be no assurance with respect to the outcome of these matters, the Company believes its hiring and wage practices do not violate antitrust laws. In addition, the Company does not presently believe any of the foregoing will have a material adverse effect on its day-to-day operations or the quality of the services, products or innovation it continues to provide to its customers,” the filing stated.

WECT reached out to representatives of nCino and Live Oak Bank for comment. nCino has yet to respond; however, a representative for Live Oak Bank provided the following statement in an email:

“We are not going to comment on securities disclosures made by other companies. We did include a statement about this matter in our 10-K filing, which you can find on our investor site. Outside of that, we won’t be making any public comments.”

nCino was founded in 2011 as an offshoot of Live Oak Bank and has become one of the world’s leading financial technology companies. The company went public in 2020.

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