wellspring capital management lawsuit

Read More Key Principal: William Dawson Junior See more contacts Industry: Management investment, open-end Printer Friendly View Address: 605 3RD Ave FL 44 New York, NY, 10158-0011 United States See other locations Phone: Website: www.wellspringcapital.com Employees (this site): Actual Wellsprings investment professionals possess diverse and complementary backgrounds that combine valuable experience in private equity, restructuring, corporate finance, capital markets and corporate law. Their most recent acquisition was Caring Brands International on Oct 25, 2021. James brought a civil suit against Trump in September, alleging the Trump organization had fraudulently inflated the value of . IAPD - Investment Adviser Public Disclosure - Homepage The middle-market private equity firm invests in companies with strong business . The amended complaint is dismissed. 2007) (citations omitted). 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. 544 and 550 and S.C. Code 27-23-10; and (3) negligent misrepresentations against Wellspring Capital, Mr. Carles, and Mr. Johnson. Discretionary portfolio management with a difference, Make your investment with Wellspring Capital Management. @S1 $82N+ZJ | Founded in 1995, Wellspring invests anywhere . Christopher Dawson: 5 Fast Facts You Need to Know - Heavy The defendants argue that New York law should apply, first, because the Loan Agreements and the First and Second Amendments contain choice of law provisions stating that New York law will apply and second, because South Carolina choice of law analysis dictates that New York law should apply. The court must construe the allegations in the complaint in the light most favorable to the plaintiff. Wellspring brought its assets under management to more than $4.4 billion as of January 2018. The Company specializes in private companies buyouts, acquisitions of divisions and subsidiaries of public companies, and going . %PDF-1.5 % 1984) for the proposition that under New York law, opinions are actionable in a negligence context. e""8*&B (Wellspring). New York law prohibits both actual and constructive fraudulent conveyances. 6. [4] Wellspring completed fundraising on its sixth fund in 2018 with $1.45 billion of investor commitments as a successor to its $1.2 billion 2011 Fund V.[3], Wellspring focuses on the packaging, healthcare, niche manufacturing and distribution sectors.[5][6]. Brought up in a family enjoying long-term success in real estate investment, Avrohom instead turned to the stock market. 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. Investments Number of Investments 2 Wellspring Capital Management has made 2 investments. Wellspring Capital - Middle Market Private Equity Wellspring Capital formed SportCo Holdings, Inc. ("SportCo") to serve as a holding company for United Sporting Company, Inc. ("United Sporting"), Ellett's direct parent; Ellett; and its subsidiaries. ~p03ngx1Ai63*oP 4TP3Nt'xn0R8tJ'a7D2P6ILky6L;0;0SUNrtd t ";Qb[K-Ii 1g%\i) IZ3uAH0J40v0xt0v40Xt8 y CJ3t@y`$21kL The Firm takes pride in its ability to marshal its resources quickly and focus on the issues that matter, resulting in speed and certainty during the acquisition process. 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. In Wellsprings view, the extent to which releases might have benefitted SportCo (as opposed to benefiting the directors alone) was at least in part a question of fact that could not be resolved on a motion to dismiss. Lister v. NationsBank of Delaware, N.A., 329 S.C. 133, 143 (Ct. App. Additionally, the plaintiff argues that the third element of New York's third-party beneficiary test is not met because there is no express intent in the Loan Agreements or the Amendments to compensate the defendants in the event the distributions were not paid and in fact, the Loan Agreement indicates the opposite by virtue of the inurement clause found in Section 13.1. The District Court discussed the South Carolina Supreme Court's decision in Sheldon v. Blauvelt, 29 S.C. 453 (1888). Will Others Follow? W.D. On December 31, 2018, the Borrowers defaulted on their obligations under the Loan Agreements and the Amendments. at 613-14. Since its founding in 1995, Wellspring has raised over $4 billion of initial capital commitments through six private equity funds. . Working at Wellspring Capital Management | Glassdoor Importantly, however, the Wellspring court declined to dismiss the litigation trusts duty of loyalty claim, stating on a cursory basis that Drawing all inferences in favor of the Trustee, the Complaint contains sufficient allegations that the D&O Defendants breached their duty of loyalty regarding the Failed Out of Court Restructuring. Id. 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. All rights reserved. The Court does not have to decide whether Prospect is a preexisting or a subsequent creditor. Va. Mar. PDF Wellspring CEO Takes Leave After Son Accused of Rape in Lawsuit In the legal profession, information is the key to success. The plaintiff's third cause of action, for negligent misrepresentation against defendants Wellspring Capital, Mr. Carles, and Mr. Johnson, must also be dismissed. Over the past 27 years, Wellspring has invested in over 50 platform investments and completed over 80 add-on acquisitions across various segments of the U.S. and global economies. A customer lawsuit filed earlier this month against Sequoia, Paradigm, and Thoma Bravo, alleges these funds gave an "air of legitimacy" to FTX andvia their hundreds of millions in funding and. 1996)). By continuing to use this website, you agree to UniCourts General Disclaimer, Terms of Service, The alleged statements simply do not constitute actionable statements that can form the basis of a negligent misrepresentation claim. 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. Investment adviser | Wellspring Capital Management Ltd | M25 0FX Innovative Custom Brands, Inc. v. Minor, 2016 WL 308805, at *2 (S.D.N.Y. The Wellspring court was ruling on a motion to dismiss, and therefore accepted the plaintiffs somewhat barebones and perhaps self serving assertions as true and in the light most favorable to that plaintiff. The basic complaint is that Wellspring directors put self-interests above those of the company and its creditors. Ashmore for Wilson v. Dodds, 262 F. Supp. Click here to login, 2023, Portfolio Media, Inc. | About | Contact Us | Legal Jobs | Advertise with Law360 | Careers at Law360 | Terms | Privacy Policy | Cookie Settings | Help | Site Map, Enter your details below and select your area(s) of interest to stay ahead of the curve and receive Law360's daily newsletters, Email (NOTE: Free email domains not supported). Marlow v. Oakland Gin Co. (In re The Julien Co.), 128 B.R. The United States District Court for the District of South Carolina found in a fraudulent conveyance case, relying on Terry v. Walker, that South Carolina conflict of law rules should apply to determine the applicable substantive law. Relevant here: the plaintiff/litigation trust alleged that SportCos directors: Finally, the litigation trust also asserted a variety of other counts in its complaint related to other facts, circumstances, and actions that are not the subject of this Alert. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. Charles E. Walker, Jr. argued in support of dismissal due to lack of a triggering creditor based on Prospect's secured status, failure to state a claim under New York law due to lack of insolvency, on equity grounds because Prospect failed to obtain a personal guaranty from Mr. Walker and because the distributions were specifically contemplated by the loan transaction, and due to failure to state a claim for fraudulent conveyance under South Carolina law. 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 . 2005)). Wellspring also rejected in cursory fashion the defendants argument that it is not necessarily a breach . P. 12(b)(6). 2020) (quoting Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009)). Ellett achieved high sales and revenues and had significant operations until sometime in 2016, when its profits began to decrease. Wellspring Capital Management is a leading private equity firm headquartered in New York. 401(k)/403(b) Plan Litigation Risk Management, Analytics & Behavioral Science Consulting (R&G Insights Lab), Committee on Foreign Investment in the United States (CFIUS), E-Discovery, Discovery Strategies & Data Analytics, Executive Compensation & Employee Benefits, Government Enforcement / White Collar Criminal Defense, Life Sciences Licensing, Collaborations & Joint Ventures, The Music Stops on the Texas Two-Step: Third Circuit Dismisses LTL Bankruptcy Case. Mr. Friedman filed an amended complaint the same day. 22-2003, 2023 WL 1098189 (3d Cir. The South Carolina Supreme Court stated that New York law would govern the validity of the transfer before it, unless applying New York law would result in a violation of South Carolina public policy. 'Ov}b0. wikipedia.en/Vatterott_College.md at main chinapedia/wikipedia.en Will His AI Plans Be Any Different? Wellspring Philanthropic: An Ocean of "Dark Money" on the Left A former Wellspring Capital Management employee filed a lawsuit against the son of Wellspring chief executive Bill Dawson, alleging that he raped her and that Bill Dawson threatened to. Description. Revenue: $500 million to $1 billion (USD) Competitors: Unknown. 2d 317 (S.D.N.Y. Munich, by far the largest city in southern Germany, lies about 30 miles (50 km) north of the edge of the Alps and along the Isar River, which flows through the middle . Salaries posted anonymously by Wellspring Capital Management employees. Make your practice more effective and efficient with Casetexts legal research suite. Please see our Privacy Policy. & Loan Ass'n of New York City, the plaintiff loaned funds to the defendant, secured by a mortgage on a parking garage. Wellspring Capital Management | LinkedIn The firm prefers to invest through means of carveout, buyouts, add-on, public to private and growth capital. Id. 1994)). Wellspring has earned the reputation as a trusted, reliable partner and is often the preferred partner of a portfolio companys senior management team. Under certain conditions, section 548 allows the avoidance of a transfer made within two years of the date of the filing of the bankruptcy petition. York Capital Management Feb 2021 - Present2 years 1 month New York, New York, United States Wellspring Capital Management LLC 13 years 5 months Partner Dec 2016 - Dec 20204 years 1 month. Wellspring Capital Management is a mega-sized private equity firm that focused on a variety of transaction situations. The plaintiff, however, asserts that federal conflict of law principles should govern what state's law applies in this case, because "[a] claim under 544(b) incorporates 'applicable law,' but it is a claim under federal law with a substantive federal law recovery scheme." Trump legal team requests six-month delay in New York civil lawsuit Oct. 14, 2021) (Stickles, J.) 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. R. Civ. SEC / JURISDICTION. hXO8WtVH,~W"I/ {;N7'0HAA0%`Ih5L!p! Please see our Privacy Policy. Ellett Brothers LLC ("Ellett"), a South Carolina limited liability company, was a sporting goods distributor. 89], Charles E. Walker, Jr. [Docket No. at *3 (quoting In re Sharp Int'l Corp., 403 F.3d 43, 53 (2d Cir. On 05/20/2022 Wellspring Capital Management, LLC Wellspring Cap filed an Other lawsuit against Barry, III.This case was filed in U.S. Bankruptcy Courts, New York Southern Bankruptcy. The elements of a negligent misrepresentation claim under South Carolina law are as follows: Turning now to the present case, the third cause of action must be dismissed under either New York or South Carolina law because the statements that the plaintiff asserts constituted negligent misrepresentations were all statements regarding potential outcomes of a potential business endeavor; thus, they relate to future events and cannot form the basis of a negligent misrepresentation claim. David R. Duncan US Bankruptcy Judge District of South Carolina. PLEASE SEE THIS LINK FOR FULL DISCLAIMER: https://www.wellspringcapital.co.uk/disclaimer. These emails can hardly be considered negligent misrepresentations. Contact:KekstMark Semer or Peter Hill212.521.4800, Cision Distribution 888-776-0942 The plaintiff relies on the fact that Ellett was unable to pay the debt owed to Prospect at the time that it had to be paid in full; however, this is not the only relevant point in time. Id. Fund VI brings the firm's assets under management to more than $4.4 billion. About Wellspring Capital Management Wellspring Capital Management is a leading private equity firm headquartered in New York. We see how Bembury is able to walk the line of business convention while taking his art to new heights, turning ordinary items into extraordinary footwear. Pentec Health Inc. Acquired by Wellspring Capital Management - PRWeb Defendant Bernard Ziomek is in default in this matter. The Court further notes that here, section 548 is not available to the plaintiff due to the timing of the transfers and the bankruptcy filings. Mr. Friedman was substituted as the plaintiff on January 10, 2020. Wellspring Capital Management LLC Chief Executive Officer Bill Dawson has taken a leave of absence, days after a former employee alleged in a lawsuit that he threatened her for accusing his son of sexual assault. Musk Made a Mess at Twitter. David Westin speaks with top names in finance about the week's biggest issues on Wall Street. Designed By, https://www.wellspringcapital.co.uk/disclaimer. The elements of a negligent misrepresentation claim under New York law are: The plaintiff also cites King County, Washington v. IKB Deutsche Industriebank, 863 F. Supp. In particular, the bankruptcy court held that the allegations failed to support a conclusion that the SportCo directors were somehow acting on an uninformed basis or that the rejection of the out-of-court restructuring was grossly negligent. Wellspring Capital is a boutique discretionary management service - with a portfolio positioned for high performance. Wellspring Capital Management Portfolio Investments, Wellspring Capital Since its founding in 1995, Wellspring has raised over $4 billion of initial capital commitments through . The firm's objective is to bring partnership, experience and value creation to each investment. Industry: Investment & Asset Management. 92], Todd Boehly [Docket No. In re Merritt Dredging Co., Inc., 839 F.2d 203, 205 (4th Cir. Wellspring Sues Insurers To Fight Claims It Tanked Gun Seller An actual fraudulent conveyance is any "conveyance made . An outside law firm will assist with the probe to determine the validity of these reports, which allege behavior that is not only shocking but completely inconsistent with our corporate values and standards., Family calls complaint pure fiction intended as a shakedown, Dawson steps away from firm to spend time with his family. 915 0 obj <> endobj We are motivated and incentivised to succeed. After the defendants filed replies, the Court held a hearing on June 18, 2020. 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. 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). Finally, in West Side Fed. "[F]or purposes of Rule 12(b)(6), '[the court is] not required to accept as true the legal conclusions set forth in a plaintiff's complaint.'" Their most recent investment was on Jan 1, 2020, when Steele Solutions raised Seth Pearson - Managing Director - Private Equity - York Capital Environmental, Social and Governance (ESG), HVAC (Heating, Ventilation and Air-Conditioning), Machine Tools, Metalworking and Metallurgy, Aboriginal, First Nations & Native American. Otherwise you cannot get paid." Bloomberg View columnist Barry Ritholtz looks at the people and ideas that shape markets, investing and business. The court considered whether the plaintiff had proved the tort of innocent misrepresentation. Bill Dawson is taking time off from his $2.2 billion private equity firm Wellspring Capital Management, which will investigate the claims of . The defendant represented to the plaintiff, and to an appraiser who performed an appraisal of the garage, that the parking garage had 500 parking spaces. Share Your Design Ideas, New JerseysMurphy Defends $10 Billion Rainy Day Fund as States Economy Slows, This Week in Crypto: Ukraine War, Marathon Digital, FTX. Asia Pacific; EMEA; Latin America; UK Solicitors; UK Bar; United States "To survive a motion to dismiss, 'a complaint must contain sufficient factual matter, accepted as true, to "state a claim to relief that is plausible on its face."'" 3d 341, 357 (D.S.C. Try our Advanced Search for more refined results. Reputation Management. Angel, Fund of Funds, Venture Capital), This describes the stage of investments made by this organization (e.g. .JFY+h!Hkw;s"$ 4AuF~!D =j]4z*g7i>B 1NEDm @@,!ptz"Br}-rh>wI }9.&>5/n2n/OefX The portfolio manager is also a co-investor in the strategy. Financial terms of the transaction were not disclosed. The parties are in agreement that New York and South Carolina law regarding negligent misrepresentations are substantially similar and that as a result, the Court is not required to engage in a choice of law analysis as to the third cause of action. For purposes of South Carolina law, the parties disagree whether Prospect was a preexisting creditor or a subsequent creditor. Wellspring Capital Exits Strategic Investment in Great Lakes Caring There are no allegations in the amended complaint that the debtors' liabilities exceeded their assets at the time of the transfers. Id. The Wellspring Defendants asserted all of these arguments and also asserted failure to state a claim under section 550 against certain defendants. Id. Ronald J. Friedman, as the trustee for the SportCo Creditors' Liquidation Trust, Plaintiff, v. Wellspring Capital Management, LLC, Wellspring Capital Partners IV, L.P., WCM Genpar IV, L.P., WCM Genpar IV GP, LLC, Alexander E. Carles, Bradley Johnson, F. Hewitt Grant, Charles E. Walker, Jr., Todd Boehly, Bernard Ziomek, and Andrew Kupchik, Defendants. You can review interesting Flipbooks on my site. Law360 provides the intelligence you need to remain an expert and beat the competition. [Amended Complaint, 31]. . 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."