White Oak Global Owes $100 Million Plus Over N.Y. Nurse Pensions

White Oak Global Advisors LLC owes more than $96 million to a pension fund covering New York nurses after a federal judge largely confirmed an arbitration award over allegations the company mismanaged plan assets, including during secret negotiations over a top executive job.

Judge Lewis A. Kaplan of the U.S. District Court for the Southern District of New York on Thursday confirmed nearly all aspects of an arbitration award favoring the trustees of the New York State Nurses Association Pension Plan.

The order requires White Oak to return the pension plan assets it holds—more than $96 million, according to Kaplan—and repay some of the fees it charged the plan, along with paying interest and attorneys’ fees.

Kaplan specified that the plan assets need not be returned entirely in cash, but they can’t be returned in assets that “flow from” the Employee Retirement Income Security Act violations identified by the arbitrator.

The dispute stems from plan trustees’ decision to hire White Oak to manage and invest about $80 million in plan assets pursuant to a two-year contract that ran from late 2013 to late 2015.

Near the end of the contract’s term, the plan’s former chief investment officer began undisclosed employment negotiations with White Oak that culminated in him being named the company’s vice chairman. The trustees renewed White Oak’s contract while the secret negotiations were pending.

The trustees then investigated the officer’s conduct and the plan’s relationship with White Oak, concluding that White Oak had engaged in misconduct. The trustees filed a successful arbitration action, obtaining a financial award and a decision that White Oak had violated ERISA.

Kaplan’s order confirmed the arbitration award in nearly all respects. He clarified that White Oak need not return fees it received for managing business affairs.

Covington & Burling LLP represents the trustees. Sidley Austin LLP represents White Oak.

The case is Trs. of N.Y. Nurses Ass’n Pension v. White Oak Glob. Advisors LLC, 2022 BL 90812, S.D.N.Y., No. 1:21-cv-08330, 3/17/22.