Procel levine defeats LSV Asset Management Bid to Dismiss $100M Lawsuit by Former Partner

LSV Asset Management Loses Bid to Dismiss $100M Lawsuit by Former Partners; Plaintiffs Allege Scheme to Force Sale of Equity at Significantly Reduced Price

In a major win, four former LSV Asset Management (LSV) partners successfully defeated LSV’s motion to dismiss the case, allowing their key claims of breach of fiduciary duty and breach of the implied covenant of good faith to move forward. The $100 million suit alleges LSV founder Josef Lakonishok, LSV's Chief Legal Officer Josh O'Donnell and several other high-level executives engaged in a scheme to force the sale of the plaintiffs’ equity at a significantly reduced price without their consent. The lawsuit further alleges that LSV and its executives acted for their own benefit and had pervasive conflicts of interest. (See original complaint/press release below).

A Circuit Court of Cook County judge rejected LSV’s arguments that the suit was meritless, time-barred or contractually justified, and declined to find any defense at this stage on the claims for breach of fiduciary duty and breach of the implied covenant of good faith. Plaintiffs will proceed with discovery, including obtaining sworn testimony from Lakonishok, O'Donnell and the other executives.  

“We look forward to deposing LSV's executives to see how they explain forcing their former partners to sell vested shares without their consent" commented lead attorney Brian Procel of Procel Levine, PC. “To make matters worse, LSV has withheld more than $25 million from Plaintiffs--LSV claims the $25 million generated by the forced sale is a ‘reasonable litigation reserve.' Plaintiffs haven’t seen a dime from the sale of the shares they worked their entire careers to earn. It’s another example of LSV exploiting their former partners and taking advantage of the situation for their own gain. We are eager to present this case to a jury.”

The hearing was held June 13, 2025, with a final order expected to be signed by the court imminently. While the court granted LSV’s motion to dismiss the fraud claim, it has permitted Plaintiffs to file an amended fraud claim. Any subsequent motion to dismiss filed by Defendants as to the fraud claim will be heard in October 2025.  

LSV is owned, in part, by SEI Investment Company, a publicly-traded entity.