Founder Dan Och and other former senior executives of Sculptor Capital Management have resolved a legal fight with the hedge fund by forming a special committee to explore potential transactions, according to a report by Bloomberg.

The report cites a statement issued by the new New York-based firm on Friday that the committee, which will be made up of independent directors, will gauge potential interest from third parties “that maximises value for shareholders”.

A deal could prove challenging for Sculptor, whose flagship hedge fund is underwater and has grappled with outflows almost every year since 2014. Its stock has lost more than half of its value in 2022.

Och, 61, launched a lawsuit against Sculptor in Delaware in August, in a bid to gain access to company records that could be used in a substantive lawsuit over the compensation package paid to Chief Executive Officer Jimmy Levin. The parties have now agreed that Sculptor will allow access to certain records, and the complaint was dismissed with prejudice. 

Och's dispute with Sculptor focused on Levin’s promotion to CEO and how the board determined his $145.8 million pay package.