wellspring capital management lawsuit

Investment Approach Target Investments Wellspring's objective is to acquire or invest in companies that are well-positioned to capitalize on change and can benefit from Wellspring's operating and financial expertise. The December 26, 2017 email stated, "So you will waive [your interest payments]. The legal team representing former President Donald Trump formally has requested a six-month delay in the civil case filed against him by New York Attorney General Letitia James. Since its founding in 1995, Wellspring has raised over $4.5 billion of initial capital commitments through six private equity funds. Wellsprings investment professionals possess diverse and complementary backgrounds that combine valuable experience in private equity, restructuring, corporate finance, capital markets and corporate law. S.D. This preference is a result of the Firms differentiated and conservative approach to leverage, in addition to a transparent oversight model, which is driven by our small group of senior professionals and absence of bureaucracy. The Court does not have to decide whether Prospect is a preexisting or a subsequent creditor. 3d 473, 506 (S.D.N.Y. These all relate to a proposed business transactionthe purchase by Ellett of AcuSport. Password (at least 8 characters required). The amended complaint fails to allege insolvency at the time of the transfer, an essential element of a fraudulent conveyance claim under either New York or South Carolina law, and therefore fails to state a claim under 544(b). Jan. 25, 2016) (alteration original). 2008) (citing Southmark Corp. v. Crescent Heights VI, Inc. (In re Southmark Corp.), 95 F.3d 53, 53, n.7 (5th Cir. San Francisco Bay Area, Silicon Valley), Operating Status of Organization e.g. Finally, one place to get all the court documents we need. In connection with this contemplated purchase, Alexander Carles, a managing partner of Wellspring Capital and an officer and director of SportCo and its subsidiaries, and Bradley Johnson, the president and chief executive officer of SportCo and its subsidiaries, sought to convince Prospect to forbear from exercising any remedies in the event of a payment default. Their most recent acquisition was Caring Brands International on Oct 25, 2021. (Wellspring). Over $134 million of the loan proceeds were used to fund distributions to Wellspring Capital Partners, WCM GenPar IV, L.P., WCM GenPar IV GP, LLC, F. Hewitt Grant, Charles E. Walker, Jr., Todd Boehly, Bernard Ziomek, and Andrew Kupchik (collectively, the "Transferee Defendants"). By teaming up with strong management, Wellspring is able to unlock underlying value and. The Firm will consider buyouts of private companies, acquisitions of divisions or subsidiaries of public companies, shareholder liquidity needs, partnering with entrepreneurs for growth opportunities, and special situations. Id. By teaming up with strong management, Wellspring seeks to unlock underlying value and pursue new growth opportunities through strategic initiatives, operating improvements and add-on acquisitions. Wellspring has earned the reputation as a trusted, reliable partner and is often the preferred partner of a portfolio companys senior management team. Casetext, Inc. and Casetext are not a law firm and do not provide legal advice. The Wellspring court dismissed the litigation trusts claim for breach of the fiduciary duty of care, holding that it was not adequately pled. Wellspring Capital Management Fund Manager Website www.wellspringcapital.com Fund Category Private Equity Close Date 0000-00-00 Fund Family Wellspring Capital Partners Native Currency USD Fund Manager's Location 605 Third Avenue 44th Floor New York, NY 10158 United States +1 (212) 000-0000 Fund Domiciles Canada Wellspring Capital Management, founded in 1995, is a leading middle-market private equity firm that manages more than $3 billion of private equity capital. Therefore, the plaintiff argues that he is only required to establish constructive fraud. See Sheehan v. Saoud, 650 Fed. An actual fraudulent conveyance is any "conveyance made . Whether youre building capital for your family, retirement or other life goals, we can help you with our high conviction and disciplined investment style. The firm's objective is to . In support of this argument, the plaintiff cites a case from the United States District court for the District of Idaho, which was affirmed by the Ninth Circuit, as well as a case from the United States Bankruptcy Court for the Southern District of Texas, in which the court stated that 544(b) claims are unique "because they exist only to the extent of applicable state law," but then found, "Even so, such claims are not pendant state claims in federal bankruptcy cases, but are federal causes of action rooted in federal bankruptcy law and policy." at 321. The assignment was executed in New York, but the personal property was located in South Carolina at the time the assignment was executed. Litigation. They are simply not statements of preexisting fact that were false when made. 112]. Wellspring partners with highly qualified and motivated senior management teams, actively working together to unlock a companys potential by providing ongoing financial, strategic and operational support. SportCo later filed a free fall bankruptcy and liquidatedallegedly causing substantial losses for unsecured creditors that would not have occurred had SportCo accepted that agreement in principle allegedly reached in December 2018. [Amended Complaint, 57]. v. Trimble Navigation Ltd., 484 F.3d 700, 705 (4th Cir. UNITED STATES BANKRUPTCY COURT DISTRICT OF SOUTH CAROLINA. The United States Court of Appeals for the Third Circuit wasted no time getting the new year off to a roaring start through its ruling in In re LTL Mgmt., LLC, Case No. Type: Company - Private. Defendant Wellspring Capital Management LLC is a Delaware limited liability company with its principal place of business at 390 Park Avenue, New York, New York 10022. Law360 may contact you in your professional capacity with information about our other products, services and events that we believe may be of interest.Youll be able to update your communication preferences via the unsubscribe link provided within our communications.We take your privacy seriously. If you want your business to survive, you need to understand your-self. By teaming up with strong management, Wellspring is able to unlock underlying value and pursue new growth opportunities through strategic initiatives, operating improvements and add-on acquisitions. 987, 999-1000 (Bankr. These emails may be a lot of things, but negligent misrepresentations they are not. Wellspring Capital Management LLC operates as a private equity firm. From reading the Financial Times at school to managing his first portfolio at just 18, he has built Wellspring Capital into a nationwide wealth management boutique. The issue in Merritt Dredging was the sale of a barge and the priority of parties' interests in the proceeds of the sale. The Firm also has a long history of collaboration with entrepreneurs and closely held businesses to achieve outsized growth, with a large percentage of our portfolio companies being transitioned from founder ownership. You have to know whats happening with clients, competitors, practice areas, and industries. Wellspring Capital Management is an American private equity firm focused on leveraged buyout investments in middle-market companies across a range of industries. And the best part of all, documents in their CrowdSourced Library are FREE. In June 2019, SportCo and its subsidiaries (the "Debtors") filed chapter 11 bankruptcy cases in the United States Bankruptcy Court for the District of Delaware. 23, 2006) (stating that some courts characterize fraudulent conveyance actions as tort actions, while others characterize them as matters in equity). (Compl. The firm prefers to invest in the business services, industrial, packaging, healthcare services, restaurants . Wellspring Capital Management is a leading private equity firm headquartered in New York. Hiding negative complaints is only a Band-Aid. hbbd``b`u@IHEX 3X "2A`V @B'Hl``bdV8 2h 3d 341, 357 (D.S.C. The plaintiff/litigation trust also asserted claims directly against Wellspring Capital under an aiding and abetting theoryi.e., asserting that Wellspring Capital itself aided and abetted the SportCo Boards alleged fiduciary duty breaches. The Debtors in the bankruptcy cases, pending in the District of Delaware, are SportCo Holdings, Inc.; Ellett Brothers, LLC; United Sporting Company, Inc.; Bonitz Brothers, Inc.; Evans Sports, Inc.; Jerry's Sports, Inc.; Outdoor Sports Headquarters, Inc.; Quality Boxes, Inc.; and Simmons Guns Specialties, Inc. The Court also notes that, setting the other factors aside, given the extreme nature of the urgent tone of these emails, and the highly sophisticated status of Prospect, Prospect satisfying the justifiable reliance element of a negligent misrepresentation claim is questionable, at best. The defendants' remaining arguments need not be addressed. Designed By BM Designs. REGISTRATION STATUS . & Loan Ass'n v. Hirschfeld, 476 N.Y.S.2d 292 (N.Y. App. Wellspring Capital Management is a leading private equity firm headquartered in New York. at *3 (quoting In re Sharp Int'l Corp., 403 F.3d 43, 53 (2d Cir. Similarly, Merritt Dredging suggests that federal law would apply to a section 548 cause of action, but that state law should apply to fraudulent conveyance claims based on state law. Bill Dawson is taking time off from his $2.2 billion private equity firm Wellspring Capital Management, which will investigate the claims of . There are different definitions of insolvency. Wellspring CEO Bill Dawson is taking a leave of absence, the firm said Tuesday Last week a shocking lawsuit was filed against his son Christopher It claims he drugged and violently raped and. Innovative Custom Brands, Inc. v. Minor, 2016 WL 308805, at *2 (S.D.N.Y. Fax: 877 376-7003. UniCourt uses cookies to improve your online experience, for more information please see our Privacy Policy. They were not statements of presently existing fact. 2d 520, 529 n.14 (E.D. The adviser's REGISTRATION status is listed below. Crazy 8 was started in August 2007. Please Update this case to get latest docket information. Since its founding in 1995, Wellspring has raised over $4 billion of initial capital commitments through six private equity funds. Please see our Privacy Policy. The defendants argue that in the event the Court finds the choice of law provision does not apply, South Carolina choice of law principles should be consulted to reach a finding that New York law applies. The court must construe the allegations in the complaint in the light most favorable to the plaintiff. The choice of law provision in the Loan Agreements states: In October 2017, Wellspring Capital was contemplating a purchase of AcuSport, a competitor, by Ellett, for $14.8 million. Alexander Carles' and Bradley Johnson's arguments are limited to the negligent misrepresentation cause of action, the only cause of action asserted against them. [Amended Complaint, 37, 40]. View contacts for Wellspring Capital Management to access new leads and connect with decision-makers. 1988) (adopting rule from Klaxon Co. v. Stentor Electric Manufacturing Co., 313 U.S. 487 (1941) stating that a federal court sitting in diversity should apply the choice of law rules of the state in which it sits). Wellsprings facts, as alleged, are fairly straightforward. Active, Closed, This describes the type of investor this organization is (e.g. These emails can hardly be considered negligent misrepresentations. Haynsworth Sinkler Boyd, P.A. .JFY+h!Hkw;s"$ 4AuF~!D =j]4z*g7i>B 1NEDm @@,!ptz"Br}-rh>wI }9.&>5/n2n/OefX Otherwise you cannot get paid." My company, Asia Marketing and Management, has global ambitions but consists largely of me and the intelligence, experience, contacts, and per-sonality I bring to my clients . The plaintiff responds that Prospect is a preexisting creditor because the distributions were not made until after Prospect became a creditor when the Loan Agreements and the Amendments were signed. Amazon Pauses Construction on Second Headquarters in Virginia as It Cuts Jobs, Amazon Is Closing Its Cashierless Stores in NYC, San Francisco and Seattle, iPhone Maker Plans $700 Million India Plant in Shift From China, Stock Traders Are Ignoring Blaring Bond Alarms, S&P 500 Notches Best Week Since Late January: Markets Wrap. 2009). This is the best way to manage and repair your business reputation. After the defendants filed replies, the Court held a hearing on June 18, 2020. Finally, although the plaintiff asserts that federal conflict of law principles should apply, he argues that even under South Carolina conflict of law rules, South Carolina law should apply. Frustrated stakeholders can be further inclined, and incentivized, to view all corporate decisions with an eye towards litigation first through a 20/20 hindsight lens. A former employee of Wellspring Capital Management filed a lawsuit in a New York Thursday alleging that the CEO's son, Christopher Dawson, drugged and repeatedly raped her one night in the. wilshire country club membership cost,

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