BlackRock sued by former employee for $12.4 million

BlackRock is facing a lawsuit in New York State Supreme Court filed by Neal Dignum, a former director in the firm’s Long Term Private Capital fund. Dignum alleges that the asset manager failed to pay him $12.4 million in promised carried interest, which is a performance-based share of investment fund profits.

According to the legal complaint, BlackRock allegedly recruited Dignum between November 2021 and February 2023 but deliberately avoided finalizing a formal written compensation agreement. The lawsuit claims that an offer letter and term sheet were used to induce Dignum to accept the position, but the promised payments were never fulfilled. The litigation could potentially force the company to disclose details regarding its internal compensation and pay package structures.