A Massachusetts judge is letting most of a lawsuit involving a string of car or truck dealerships in southern Maine to transfer ahead.
The Superior Court docket judge dismissed a couple of counts in the lawsuit filed by David Rosenberg, who in 2017 bought most of his stake in Prime Motors to New York-based mostly financial commitment organization GPB Funds Holdings for $235 million. Rosenberg was named chief govt of the expanded enterprise, renamed Primary Automotive Group, which is based in Massachusetts and owns 40 dealerships in the Northeast. But Rosenberg shortly complained about economic misdeeds he reported he uncovered and exercised an possibility that permitted him to promote the rest of his stock to the enterprise.
The business fired Rosenberg, and when it failed to make a payment on Rosenberg’s shares, he filed match in Massachusetts.
The defendants wanted a decide to dismiss the lawsuit, but Justice William Sullivan established aside only a few counts in the lawsuit and is enabling most of it to go ahead.
For instance, the eight defendants questioned Sullivan to dismiss the suit from them as people, arguing that they did not carry out enterprise in the commonwealth, in spite of the company’s staying dependent in Massachusetts. But the choose dismissed only a element of the accommodate from one particular of the defendants.
Sullivan also dismissed some individual rates from specific defendants on a further depend and threw out a fraud allegation, but permitted most of the go well with versus the company executives or board users and the business by itself to transfer forward.
A statement issued by a spokeswoman for GPB Money famous that two earlier initiatives by Rosenberg to get injunctions failed, and that the business claimed it considered it would in the long run prevail on the remaining counts.
Primary Automotive or entities connected with its dad or mum corporation, GPB Cash, also deal with lawsuits filed by a Texas legislation business, which alleges the enterprise defrauded buyers of $1.8 billion, and the Commonwealth of Massachusetts, which said 180 investors in the condition have missing $14 million.
All those satisfies echo several of Rosenberg’s allegations. He said the parent business promised to fork out traders from gains, but rather employed revenue from new investors to pay individuals who had put in funds just before. In that way, he explained, it operated like an unlawful Ponzi scheme.
He also claimed GPB Cash executives made pretend contracts and adopted discounts that benefited the heads of the investment fund instead than traders. And, Rosenberg claimed, in 2018 an accounting organization employed to audit the financial commitment firm’s publications resigned and explained it was withdrawing its viewpoints that experienced given the business a thoroughly clean monthly bill of economical wellness for 2015 and 2016.
A string of Prime dealerships in Saco and Scarborough was launched in 2004 by Ira Rosenberg, who experienced designed and then bought the Ira Motor Group string of dealerships in Massachusetts. Ira and David Rosenberg started operating the Maine dealerships jointly a number of many years later. Ira Rosenberg retired in 2017 and died in 2019.