According to the U.S. Bankruptcy Court docket, the Court approved RCS Capital’s compromise settlement by and among the Debtors, its former employees and Lightyear Capital.
As previously reported, “The Debtors disagree with the Defendants’ positions, but recognize that there is risk and uncertainty in all litigation. The Settlement Agreement, among other things, allows the Debtors to avoid such risks and uncertainties in favor of a definite result that adequately protects the restructuring process and the Debtors’ businesses.”
The motion continues, “Moreover, the Settlement Agreement provides that the Former Employees will be prohibited from working for the Defendant Affiliated Companies during the Term, ending on the later of September 4, 2016 or the Effective Date of the RCS Capital Bankruptcy Plan, subject to a cap of December 4, 2016. Thus, the Settlement Agreement protects the Debtors’ business interests and their reorganization process during that critical time, which will in turn benefit the Debtors’ creditors and other parties in interest. Lastly, as is customary, the mutual releases among the Parties included in the Settlement Agreement ensure that the disputes raised in the Verified Complaint are accorded a final resolution.”
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