Trading and broking company TP Icap PLC has taken legal action against trading firm NEX Group Ltd. over claims that it broke the terms of a £1.3 billion deal, The Sunday Times reported.
Tullett Prebon PLC changed its name to TP Icap after taking over the global hybrid voice broking and information business of NEX Group, formerly Icap PLC, in 2016.
TP Icap accused NEX Group of breaching warranties that ensured the voice broking business was not exposed to any significant litigation, claiming staff had "actual or potential legal claims" against it in relation to their incapacity benefits. TP Icap said employees were told by the business that they were entitled to incapacity benefits up to age 65 if they needed to take time off work for more than six months due to illness, according to the report. In reality, however, the cut-off age was 55.
TP Icap said when the deal was signed, this meant employees had "actual or potential legal claims" against the business in relation to their incapacity benefits. 12 employees who should have received more than £15 million in total benefits have been identified by the firm, the Dec. 16 report noted.
In July, John Phizackerley stepped down as TP Icap's CEO, and the company warned that its underlying operating profit for 2018 will be hit by higher costs stemming from Brexit and regulatory changes, among other factors.
TP Icap also recently appointed Richard Berliand chairman-designate, effective in the first quarter of 2019.