The planned $104 million floatation of a UK-based private equity-backed financial services group has been suspended following legal action from Archeus Capital Management, it has been reported.
GlobeOp Financial Services, in which TA Associates holds a stake, confirmed that the sale of shares had been called off in a report in British broadsheet the Times. Archeus is pursuing the lawsuit claiming that the firm’s failure last year was the fault of GlobeOp, which it is alleged are responsible for “colossal failures” in reconciling billions of dollars in trades in Animi funds which are overseen by Archeus.
The lawsuit says: “GlobeOp acted with reckless indifference to the rights of Archeus, the Animi Funds and their investors in a manner that smacked of intentional wrongdoing.”
Archeus is seeking damages of $425 million in the lawsuit, which was filed in the New York State Supreme Court on Monday.
Meanwhile, GlobeOp has rejected the claims and has announced it will “vigorously assert a strong defence as well as counterclaims”. The group also stated that it plans to resume its floatation at a later date.