Stay updated with the latest news from Centerview Partners LLC by signing up for our free email updates. We’ll send you a daily digest email, called myFT, summarizing the most recent news from Centerview Partners LLC each morning.
In a highly contentious legal dispute, a former technology banker, David Handler, is facing off against his former employer, Centerview Partners. Handler claims that he is entitled to hundreds of millions of dollars in equity from the investment bank based on a handshake agreement. However, Centerview has denied his claim, stating that there is only an “oral partnership agreement.”
During the court proceedings, co-founder Robert Pruzan admitted to altering Handler’s pay structure in 2012 without a written contract. In his testimony, Pruzan stated, “We changed the amounts of profits they were getting and their potential for receiving deferred compensation… that is not written down anywhere, no.”
Handler has filed a lawsuit against Centerview, arguing that the firm had agreed to make him a top partner and grant him equity through an oral partnership agreement in 2012. A ruling on Handler’s status and his right to inspect Centerview’s financial books will be determined in the Delaware state courthouse, although the decision may take weeks or months.
This legal battle has shed light on the inner workings of Centerview, a boutique investment bank known for its successful corporate advising on Wall Street. Centerview has handled major merger and acquisition deals, such as the sale of Credit Suisse to UBS, earning significant fees per transaction.
The litigation between Handler and Centerview has become bitter, with Vice-chancellor Sam Glasscock of the Delaware Court of Chancery reprimanding both sides for interrupting each other during the hearings.
Handler testified that in 2012, he was on the verge of leaving Centerview because he had not been given ownership in the firm. However, during a meeting at the University Club in Manhattan, a last-minute agreement was reached, where Handler would exchange his cash pay arrangement for the opportunity to share risks and rewards with Pruzan and Effron, Centerview’s co-founders. Although no written agreement was signed, Handler believed that the deal was valid as Centerview had implemented aspects of the revised terms and internal spreadsheets showed his status as a top partner.
At the hearing, Centerview’s lawyers presented email chains indicating that Handler had admitted that the partnership terms were never finalized. Centerview has argued that regardless of Handler’s status as a full partner, all partners are only entitled to their full equity through an initial public offering or company sale if they remain with the firm.
Pruzan initially stated that Centerview does not operate under oral agreements but later appeared to backtrack, admitting that he provided Handler with a different employment agreement in 2012, which included a 7% equity grant and deferred compensation, even though it was not signed in a contract.
Handler’s relationship with Effron and Pruzan deteriorated during the pandemic, with Handler accusing Pruzan of undermining him and ultimately leading to his resignation in August. Handler has filed a motion with the court to sanction Centerview, alleging that the firm has been uncooperative in providing partnership records.
The court has kept Centerview’s financial and pay figures confidential during the proceedings. Centerview has requested confidential treatment, stating that publicizing this information would reveal insights into their personnel decisions, organizational economics, and internal operations.
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
