Prime Automotive | Fender Bender | December 9, 2019
Did GPB Capital Holdings violate pre-existing agreements when it ousted Prime Automotive Group’s CEO David Rosenberg? A new lawsuit filed by Rosenberg says so, as reported by Fender Bender:
“Dec. 9, 2019—David Rosenberg, ousted CEO of the Prime Automotive Group, has filed an amended legal complaint against New York-based GPB Capital Holdings, reported Press Herald.
The complaint accuses the investment firm and its affiliates of violating several pre-existing dealership franchise agreements with auto manufacturers when it fired him in September. It alleges that those dealerships are now at risk of losing their franchise status.”
Investors have been increasingly concerned with GPB, and Rosenberg’s firing only added fuel to the fire:
“Rosenberg was fired a few months after he sued GPB Capital in July in a Massachusetts court, accusing it of financial misconduct. Rosenberg filed a lawsuit against GPB Capital in July, accusing the company of operating an illegal Ponzi scheme.
In November, another GPB Capital investor filed a federal lawsuit accusing the company of operating an illegal Ponzi scheme. The lawsuit, which is seeking class-action status, accuses the company of misleading at least 2,000 investors into handing over a total of more than $1.8 billion.”
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