Former BlackRock Director Files $12.4 Million Lawsuit Over Compensation Dispute

BlackRock is facing a lawsuit from Neal Dignum, a former director in the firm's Long Term Private Capital fund, who claims he was not paid the $12.4 million in carried interest promised to him. The lawsuit, filed in New York State Supreme Court, alleges that BlackRock failed to formalize a compensation agreement during Dignum's employment from November 2021 to February 2023. Dignum's attorney, Lauren Zimmerman, stated that BlackRock did not uphold its contractual obligations. The lawsuit includes an offer letter and term sheet detailing the promised compensation, which is typically a significant portion of hedge fund managers' earnings. Dignum is seeking to make the details of the lawsuit public, as the current complaint is sealed due to concerns of potential retaliatory actions from BlackRock. The firm has not yet commented on the lawsuit. BlackRock, headquartered in New York City, manages over $15.3 trillion in assets.