State Streets lawsuit against a third party securities lending agent start-up, composed of its former employees, has been branded as meritless by Craig Starble, co-founder of the new venture.
Starble, a former head of securities lending at State Street, left the firm in March 2009. Starbles new venture, Premier Global Securities Lending, has taken another seven staff from State Streets securities lending team, including Paul F. Lynch, head of global trading, and Peter Economou, Starbles replacement.
In a statement from PGSL, the firm categorically rejects any wrongdoing, and notes that the former State Street staff that followed Starble to PGSL were at-will employees at State Street, and none of the employees had a non-compete agreement with State Street.
State Street has not sought any emergency injunctive relief, and PGSL has yet to receive a court order.
According to a statement from State Street: State Street requires its senior managers adhere to their employment and confidentiality agreements to protect the interests of its clients, investors and employees. State Street believes that these former employees breached their obligations to State Street, and we intend to protect the Company against this wrongdoing.
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