Apollo Global Management has settled a lawsuit against two former executives of its insurance unit, Athene Holding, just days before the case was set to go to trial in New York. The private equity firm had accused Stephen Cernich and Huan Tseng of working to start a competing insurance company. The trial was scheduled to begin Monday, with Apollo’s CEO, Marc Rowan, expected to testify.
The lawsuit, originally filed in 2020, claimed that Cernich and Tseng teamed up with former Apollo partner Imran Siddiqui and principal Ming Dang to create Caldera Holdings, a rival insurer to Athene. Apollo had already won $1.2 million in arbitration against Siddiqui and Dang but was seeking at least $30 million from Cernich and Tseng. The details of the settlement were not disclosed, and neither side commented.
Cernich had served as Athene’s executive vice president and chief actuary before leaving in 2016, while Tseng was vice president of reinsurance. Apollo alleged that they helped Siddiqui and Dang steal confidential information from the company. Apollo also claimed that when it learned Caldera was competing with Athene in acquisitions, it initiated further legal action.
Siddiqui left Apollo in 2017 after playing a key role in growing Athene. Shortly after his departure, he launched Caldera, which Apollo said violated non-compete agreements. Siddiqui fought back with a lawsuit of his own, saying Apollo was trying to sabotage Caldera, which he said had plans to raise $3 billion.
Although Caldera no longer seems to be operating, Siddiqui has moved on in the insurance world. He was named interim president of Talcott Financial Group at Sixth Street Partners in 2022 and became CEO this year.
Athene is one of Apollo’s most valuable assets, managing around $400 billion. Since Rowan became CEO of Apollo in 2021, the firm’s assets have nearly doubled, reaching about $840 billion. The outcome of this lawsuit would have had significant stakes for the company’s future. For now, with the settlement, both sides have opted to avoid a courtroom showdown.