A senior exec is suing trading firm Vatic, saying it stiffed him on $1.5 million and blamed 'funding difficulties'

"A senior executive at quantitative trading firm Vatic Labs resigned last month and sued the company, alleging it failed to pay most of a contractually guaranteed $1.5 million bonus, according to a complaint filed in Delaware Superior Court. Rosen Kralev, the former director of trading at the high-frequency trading firm, alleges in court papers that Vatic for months blamed the missed payments on difficulties raising funds. It is the second instance in the past year of a former Vatic executive suing the firm over alleged nonpayment."

"Vatic disputes Kralev's allegations and moved to halt the Delaware lawsuit, arguing that its operating agreement gives the company the unilateral right to compel confidential arbitration and that an arbitrator - not the court - must decide whether the claims can proceed. A judge this week granted Vatic's motion to stay, sending the case to arbitration."

""The company rejects the allegations made by Mr. Kralev and his counsel and will address them in the appropriate forum," Vatic told Business Insider in a statement through its attorney."

Rosen Kralev resigned as director of trading at Vatic Labs and filed a complaint in Delaware Superior Court alleging the firm failed to pay most of a contractually guaranteed $1.5 million bonus. The complaint alleges Vatic repeatedly blamed the missed payments on difficulties raising funds. Vatic moved to stay the court case and compel confidential arbitration under its operating agreement; a judge granted the motion and sent the case to arbitration. Vatic issued a statement rejecting Kralev's allegations and saying it will address them in the appropriate forum. Kralev's attorney declined to comment. Vatic has sought to expand beyond ultrafast trading and to raise outside capital.

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