Banking & Finance

DOJ Drops Probe Of NCino's Hiring, Wage Practices

By Jenny Callison, posted Feb 16, 2023
The U.S. Department of Justice's Antitrust Division recently closed an investigation into Wilmington-based nCino’s hiring and wage practices, and is taking no further action. Nor is the DOJ imposing any fines, sanctions or penalties as part of the investigation, officials said.
The review resulted from a lawsuit filed in early 2021 against both nCino and Live Oak Bank’s software engineering department, alleging that the companies, along with Live Oak joint venture firm Apiture, had agreed to not recruit, hire or poach each other’s employees, in violation of federal and state antitrust laws.  
On Feb. 23, 2021, the DOJ’s Antitrust Division served nCino and certain of its officers and employees with grand jury subpoenas that sought documents and information concerning its investigation. 
“We are very happy the process is over and that the expenses associated with cooperating with the investigation will now cease, and we will vigorously defend ourselves in the ongoing civil case, which is wholly without merit,” nCino spokeswoman Kathryn Cook said Wednesday. “As a company founded over 11 years ago in Wilmington, we are a proud, longtime employer in this area, with a strong culture and a commitment to giving back to our local community.”
The class action lawsuit was brought by Joseph McAlear, a former employee of both Live Oak Bank and Apiture. After approving a settlement agreement last May, a federal judge formally dismissed the suit against Live Oak and Apiture. The companies agreed to pay a combined $4.65 million, to be shared among 1,925 class members to settle their liabilities in the case. 
nCino, however, did not agree to settle, and – as Cook stated – will continue to defend itself in the case. Given the DOJ’s decision not to pursue antitrust allegations against the firm, however, the future of the suit is unclear.

Last May, McAlear's attorney, Anne Shaver, told the Business Journal that they had a "smoking gun" in the form of an email from an nCino recruiter that referenced a "gentleman’s agreement" whereby the companies agreed to not hire one another's employees. To prove a violation of antitrust law has occurred, a party doesn't have to show the existence of formal written policies, Shaver said at the time. 
Ico insights


Web awstaffpic2020 1 132245438

The 2024 Luncheon for Literacy featuring Special Guest Jason Mott

Alesha Edison Westbrook - Cape Fear Literacy Council
Gretchen roberts 2021

Buying a Business? 6 Critical Finance and Tax Questions Before the Purchase

Gretchen Roberts - Red Bike Advisors
Headshotrosaliecalarco 1182131047

Nominate your Hometown Hero

Trending News

Filling In: Apartments Edge Into Downtown Pockets

Emma Dill - Jun 20, 2024

Entrepreneur Buys Downtown Building For Escape Room Venture

Emma Dill - Jun 21, 2024

Star Power: Feature Film Uses Carolina Beach Setting

Staff Reports - Jun 20, 2024

Aging In Place

David W. Frederiksen - Jun 21, 2024

Testing The Waters: New Regulations Are Flowing To Make Water Safer

Audrey Elsberry - Jun 20, 2024

In The Current Issue

CVB Dollars Fuel Out-of-state Push

From marketing to potential visitors via streaming services to attracting more events to the convention center, the Wilmington and Beaches C...

Startups Weigh Local Support

What do Wilmington startup newcomers moving for quality of life and proximity to the beach think of the area through a technological and ent...

Pretzel Production Presence

Drink’N Pretzel makes seasoned sourdough pretzel pieces. Officials say the company began with the mission of creating a snack that pairs wit...

Book On Business

The 2024 WilmingtonBiz: Book on Business is an annual publication showcasing the Wilmington region as a center of business.

Order Your Copy Today!



2024 Power Breakfast: The Next Season