nCino agrees to settle civil lawsuit over hiring practices
WILMINGTON, N.C. (WECT) - Wilmington-based financial technology company nCino has agreed to settle a class-action lawsuit brought by its employees and employees of two other locally-based companies: Live Oak Bank and Apiture.
The lawsuit, filed in March 2021, accused the three companies of having an illegal no-hire agreement regarding each other’s employees, which the suit alleges violates antitrust laws.
nCino denies any wrongdoing but, according to court documents, has agreed to settle the lawsuit for $2.19 million to “avoid the distraction and expense of protracted litigation and instead continue to focus on its employees and customers.”
According to the settlement agreement, the terms are similar to the agreements reached by Live Oak and Apiture in 2022.
The settlement money will be paid into a non-reversionary common fund, which will be distributed among those employed by the three companies between January 2017 and March 2021.
The settlement agreement also reads, “nCino will also agree that it will not enter into, maintain or enforce any agreement with another employer that violates the antitrust laws.”
The document says the attorneys for the plaintiffs will receive one-third of the settlement money. The only employee who is named as a plaintiff in the suit, Joseph McAlear, will receive $90,000.
Court documents also show that the Department of Justice opened an investigation into the hiring practices of Apiture, Live Oak Bank, and nCino after the lawsuit was filed.
“That investigation was ongoing at the time the Live Oak Bank and Apiture settlements were submitted to the Court for approval, but DOJ has since closed its investigation into nCino without imposing any fines, sanctions, or penalties, and without bringing any actions, against nCino, its officers, or its employees,” documents read.
WECT reached out to nCino for comment on the settlement agreement but has yet to receive a response.
Copyright 2023 WECT. All rights reserved.
