Litigation finance firm Siltstone Capital LLC has initiated arbitration proceedings against its former general counsel, Manmeet Walia, alleging that he misappropriated confidential information to establish a competing entity, Signal Peak Partners LLC. This development follows a Texas state lawsuit in which Siltstone accused Walia of diverting business opportunities and utilizing proprietary data to form the rival firm.
Walia, who joined Siltstone in 2015 and ascended to the role of managing partner, departed the company in May 2025. Shortly thereafter, he co-founded Signal Peak Partners with Lauren Harrison, a former litigation partner at Vinson & Elkins. Siltstone contends that Walia’s actions constitute a breach of fiduciary duty and misappropriation of trade secrets.
In response, Walia asserts that Siltstone was fully aware of his plans to launch a new litigation funding firm and had released him from his non-compete obligations. He further claims that Siltstone permitted him to recruit his former team from the company. Walia’s legal counsel, Ashish Mahendru, characterized the lawsuit as “frivolous and abusive,” emphasizing that Siltstone had previously endorsed Walia’s new venture and even anticipated a carried interest in it.
The case was initially brought before the Texas Business Court’s Eleventh Division in Houston, where Judge Grant Dorfman denied Siltstone’s request for a temporary restraining order aimed at halting Signal Peak’s operations. The court’s decision paved the way for the dispute to proceed to arbitration, as stipulated in the parties’ agreements.
Siltstone is also pursuing claims against Hazoor Partners, its largest investor, which has become an anchor investor in Signal Peak. The firm alleges that Hazoor’s involvement with Signal Peak further compounds the breach of trust and misuse of confidential information.
As the arbitration process unfolds, the outcome of this case is poised to have significant implications for the litigation finance industry, particularly concerning the enforcement of non-compete clauses and the protection of proprietary information within the sector.