RIA firm sues Focus Financial for books and records

Strategic Point Investment Advisors LLC, a wealth management firm that was one of the original affiliates of Focus Financial Partners, has sued the company to get access to its financial data.

The action was filed under seal in Delaware’s Court of Chancery on Nov. 17 by Strategic Point’s holding company, Progressive Financial Strategies LLC, four days after New York-based Focus announced a recapitalization and its first acquisition in more than a year.

Focus, a so-called roll-up firm that buys 40% or more of a wealth management firm’s revenue in return for cash and equity, would have to respond by tomorrow under normal schedules in the Delaware court, lawyers said.

Loretta Mock, a spokeswoman for Focus, declined to comment.

By filing under seal, Strategic is likely showing the court that it is flexible about allowing Focus to redact confidential information before filings are made public, according to lawyers who aren’t involved in the case. Both Focus and Progressive Financial Strategies are incorporated in Delaware.

The decision to sue indicates that Strategic Point is unhappy with recent events at Focus and may want to force a settlement that could allow it to back out of its relationship with the firm, speculated bankers who have worked in the past with wealth management mergers.

To read the complete story, please see the Nov. 30 print edition of InvestmentNews