Riley Friedman Asset Management, the California-based firm founded recently by portfolio managers Jonathan Riley and Stuart Friedman, says it has settled the lawsuit filed by the duo’s former employer Lehrer Management.

The asset manager opened in May 2011 and so far has around $100 million in assets under management. The firm says its strategy doesn’t involve selling products and that it uses individual stocks and bonds to manage client assets.

"We are paid a fee based on assets under management, and invest for ourselves the way we invest for clients," said Friedman.

Prior to opening RFAM, Riley and Friedman worked for 14 years and 9 years respectively at Lehrer Management, where they managed various client portfolios. The lawsuit filed by Lehrer in June has now been settled and dismissed, according to a statement from Riley and Friedman.

RFAM is headquartered in Silicon Valley, with Riley serving as president, while Friedman is a principal.