David K. Laidlaw, the former managing partner of Eagle Ridge Investment Management, has filed a lawsuit against Carnegie Investment Counsel, alleging that the Ohio-based RIA suppressed earnings figures to undervalue his ownership stake. The complaint, filed August 7 in Cuyahoga County Court of Common Pleas, names Carnegie Capital Asset Management LLC (dba Carnegie Investment Counsel), CEO Richard Alt, and president Gary Wagner as defendants, along with seven other Carnegie members who are not individually accused.
Laidlaw, who retired from Carnegie in April, claims that while the firm was marketing itself for sale to potential buyers on estimated EBITA of about $21.3 million at multiples of 16 to 17 times, it used an "adjusted EBITA" of only $11.7 million and a 14x multiple to value his 4.3% stake. This discrepancy implies a Carnegie valuation of roughly $341 million to $362 million in the sales pitch, versus about $164 million in the written valuation used for his exit—a gap of $177 million to $198 million.
The lawsuit alleges "intentional manipulation and/or suppression of EBITA" and disputes the valuation date. Laidlaw contends the valuation should be as of March 31, 2026, while Carnegie argues for May 31, 2026. Laidlaw holds 4.7 of approximately 109 Class A units, while Wagner and an Alt-controlled entity together hold about 92% of the units, according to the operating agreement attached to the complaint.
Laidlaw's retirement notice on April 27 triggered Carnegie's obligation to buy his units at fair market value. His departure came about 15 months after Carnegie acquired Eagle Ridge, a Stamford, Connecticut-based firm with $1.3 billion in assets under management. Laidlaw had been Eagle Ridge's managing partner since 2015 and his registration with Carnegie ended July 9.
The complaint also alleges that Laidlaw's requests to inspect Carnegie's internal books on May 12, May 28, and June 17 were ignored or rebuffed. On June 10, he was reportedly told the records were "not necessary or appropriate for a valuation." He says he learned on July 20 of discrepancies among the firm's reviewed financial statements, internal statements, and tax returns.
Further, the suit accuses Alt and Wagner of self-dealing, including diverting third-party advisory or incentive fees for personal use—an unspecified amount in 2025 and $2.2 million in 2026—and using corporate funds for private jet travel to personal residences in Utah, Florida, Pennsylvania, New York, and Grenada. These expenses, Laidlaw argues, artificially depressed earnings used to price his exit.
Carnegie reported $7.5 billion in regulatory assets across 8,541 accounts and 69 employees in its July 2026 Form ADV filing, including a nine-person advisory staff in Stamford. In October 2025, Carnegie added AHL Investment Management, a Florida firm with approximately $220 million in AUM. Separately, Crain's Cleveland Business reported in March that Carnegie was ordered to pay $2.3 million in client damages following accusations of breach of fiduciary duty and civil conspiracy.
This case echoes a recent Cuyahoga County lawsuit in which a minority owner of Marcum Wealth alleged shareholder oppression during sale negotiations with Hightower. In 2024, Wendy Eldridge, a former managing director, accused the CEO of manipulating profit-and-loss figures. A jury awarded her about $3.2 million this year. Eldridge now works at Carnegie as a retirement plan advisor, having joined in July 2024. For context on similar valuation disputes, see this BNY survey on seller preparedness and the recent ESOP valuation bill.
