Emerald Lake Capital Management is a Los Angeles-based private equity firm founded in 2018. In November 2021, Carling O’Brien, a co-founder and partner of Emerald Lake, filed a lawsuit against the firm and its leadership, claiming that they improperly fired her and then seized her financial interest in the firm.
O’Brien’s lawsuit alleges a number of claims, including:
- Breach of contract: O’Brien alleges that Emerald Lake breached her partnership agreement by wrongfully terminating her employment and confiscating her financial stake in the firm.
- Breach of fiduciary duty: O’Brien alleges that Emerald Lake’s leadership breached their fiduciary duty to her by acting in their own self-interest and not in the best interests of the firm.
- Defamation: O’Brien alleges that Emerald Lake’s leadership made false and defamatory statements about her to investors and other third parties.
O’Brien is seeking tens of millions of dollars in damages from Emerald Lake and its leadership.
The lawsuit is still ongoing, and no trial date has been set. However, the case has attracted significant attention from the private equity industry and the media.
FAQs
Q: What is Emerald Lake Capital?
A: Emerald Lake Capital is a Los Angeles-based private equity firm founded in 2018. The firm focuses on investing in capital-efficient businesses with sustainable competitive advantages in the industrials and business services sectors.
Q: Who is Carling O’Brien?
A: Carling O’Brien is a co-founder and former partner of Emerald Lake Capital. Prior to co-founding Emerald Lake, O’Brien worked as an investment banker at Barclays Capital and as an investment professional at Ares Management and Investcorp International.
Q: Why did Carling O’Brien sue Emerald Lake Capital?
A: Carling O’Brien sued Emerald Lake Capital after she was fired from the firm and her financial interest in the firm was confiscated. O’Brien alleges that she was fired wrongfully and that her financial interest was seized illegally.
Q: What are the main allegations in O’Brien’s lawsuit?
A: The main allegations in O’Brien’s lawsuit are breach of contract, breach of fiduciary duty, and defamation. O’Brien alleges that Emerald Lake breached her partnership agreement by wrongfully terminating her employment and confiscating her financial stake in the firm. She also alleges that Emerald Lake’s leadership breached their fiduciary duty to her by acting in their own self-interest and not in the best interests of the firm. Finally, O’Brien alleges that Emerald Lake’s leadership made false and defamatory statements about her to investors and other third parties.
Q: What is the status of the lawsuit?
A: The lawsuit is still ongoing, and no trial date has been set.
Q: What is the potential impact of the lawsuit on the private equity industry?
A: The lawsuit could have a significant impact on the private equity industry, as it raises important questions about the rights and obligations of partners and investors in private equity firms. The outcome of the lawsuit could also affect the way that private equity firms operate in the future.
Conclusion
The Emerald Lake Capital lawsuit is a high-stakes case that could have a significant impact on the private equity industry. The outcome of the case will be closely watched by investors, partners, and other industry participants.
Sources
- pitchbook.com/profiles/investor/435332-44
- Reid Collins LLP press release: https://reidcollins.com/2021/11/11/reid-collins-files-suit-on-behalf-of-emerald-lake-capital-management-co-founder-carling-obrien/
- The Wall Street Journal article: https://www.wsj.com/articles/private-equity-firm-emerald-lake-sued-in-ownership-dispute-11636575458
