wellspring capital management lawsuit

Wellspring Capital Management, founded in 1995, is a leading middle-market private equity firm that manages more than $3 billion of private equity capital. Please see our Privacy Policy. On May 3, 2018, SportCo agreed to acquire AcuSport's assets in bankruptcy for $7 million. EFFECTIVE DATE; SEC: Terminated: 3/2/2007: As discussed in Cyrus II, the Fourth Circuit has stated that a bankruptcy court should apply the choice of law rules of the state in which it sits. An actual fraudulent conveyance is any "conveyance made . It identifies undervalued companies whose share price does not properly reflect the true value of the business. Private equity firm Wellspring Capital Management has acquired Caring Brands International, parent company of home health and hospice franchise company Interim Healthcare, for an undisclosed amount. They are not actionable. All rights reserved. %%EOF Investors in its most recent fund include the Washington State Retirement System, Minnesota State Board of Investment, Connecticut Retirement Plans & Trust Funds, Kansas Public Employees' Retirement Find More Contacts for Wellspring Capital Management, Edit Lists Featuring This Company Section, European Regulation Ushers In Global Future For Fundraising, Wellspring Capital Management Acquires Caring Brands International, Private Equity Firms with Investments in United States, Greater New York Area Investors with Funds Raised in 2017, Private Equity Firms with Investments in Asia. The courts analysis of the duty of loyalty claim can be fairly characterized as limited, consisting of four short paragraphs that largely restate or simply quote the complaint. Id. The parties disagree on what law should applyfederal or state, and further if state law applies, New York or South Carolina. You can review interesting Flipbooks on my site. Even among California Democrats, Newsom is still in the negatives, with 54% wanting him to sit out in 2024 and only 35% wanting him to run. The basic complaint is that Wellspring directors put self-interests above those of the company and its creditors. The origins of Wellspring Philanthropic Fund are shrouded. New York law and South Carolina law differed as to whether such a transfer was permitted. Wellspring has earned the reputation as a trusted, reliable partner and is often the preferred partner of a portfolio companys senior management team. After the defendants filed replies, the Court held a hearing on June 18, 2020. GitHub export from English Wikipedia. Bloomberg View columnist Barry Ritholtz looks at the people and ideas that shape markets, investing and business. In an email obtained by . Id. The plaintiff's first and second causes of action are based on 11 U.S.C. 2021 by wellspring capital Management. 2020) (quoting Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009)). Private equity firm Wellspring Capital Management LLC on Friday hit a slew of its insurers with a suit in New York state court alleging they must defend it against claims that it plundered . S.D. 2010); Saifullah v. Johnson, 948 F.2d 1282, at *1 (4th Cir. 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. Jan. 30, 2023). The firm prefers to invest in the business services, industrial, packaging, healthcare services, restaurants . Sounds like a tidy deal at year end [2017] made a lot of sense." Fed. D. Del. In considering whether to grant a motion to dismiss under Rule 12(b)(6), the court may take judicial notice of matters of public record and may consider documents attached to the complaint and the motion to dismiss, "so long as they are integral to the complaint and authentic." & Loan Ass'n of New York City, the plaintiff loaned funds to the defendant, secured by a mortgage on a parking garage. The firm prefers to invest through means of carveout, buyouts, add-on, public to private and growth capital. 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). Ashmore for Wilson v. Dodds, 262 F. Supp. It is Bavaria's largest city and the third largest city in Germany (after Berlin and Hamburg). Bill Dawson is taking time off from his $2.2 billion private equity firm Wellspring Capital Management, which will investigate the claims of . Since its founding in 1995, Wellspring has raised over $4.5 billion of initial capital commitments through six private equity funds. 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. 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. Nor is it necessary for the Court to decide whether New York or South Carolina law applies under South Carolina's choice of law principles. WELLSPRING CAPITAL MANAGEMENT, founded in 1995, is a middle-market private equity firm that has approximately $2 billion of private equity capital under management. All business will get complaints. Attorney advertising. Founded in 1995, Wellspring invests anywhere . ), Create custom alerts for specific article and case topics and, I took a free trial but didn't get a verification email. Wellspring has one of the best track records in middle-market private equity; its people, capital and reputation bring certainty to transactions. Hiding negative complaints is only a Band-Aid. 2021 by wellspring capital Management. 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. Full title:Ronald J. Friedman, as the trustee for the SportCo Creditors' Liquidation, Court:UNITED STATES BANKRUPTCY COURT DISTRICT OF SOUTH CAROLINA. 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 Home; About Us; Investment Approach. The company will explode Rich!" Middle Market Private Equity. For the reasons set forth above, the first, second, and third causes of action set forth in the plaintiff's amended complaint fail to state claims for which relief can be granted. 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. 1001 to 5000 Employees. In this process, SportCo initially exchanged a term sheet with certain of its lenders in early November 2018 and allegedly reached an agreement in principle in late December 2018. The assignment was executed in New York, but the personal property was located in South Carolina at the time the assignment was executed. at 321. The court addressed the dissent's finding, that the defendant's determination of the number of parking spaces was a matter of judgment or opinion and was therefore unactionable. The portfolio manager is also a co-investor in the strategy. NEW YORK, Jan. 10, 2018 /PRNewswire/ -- Wellspring Capital Management LLC ("Wellspring") today announced the successful closing of Wellspring Capital Partners VI L.P. ("Fund VI") with capital commitments totaling the hard cap of $1.415 billion. 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. For purposes of South Carolina law, the parties disagree whether Prospect was a preexisting creditor or a subsequent creditor. Another email stated, in part: "Gotta get your interest? REGISTRATION STATUS . 544 and 550 and S.C. Code 27-23-10; (2) avoidance and recovery of fraudulent transfers by SportCo against the Transferee Defendants pursuant to 11 U.S.C. The principal and lead portfolio manager at Wellspring Capital is Avrohom Neumann. Since its founding in 1995, Wellspring has raised over $4 billion of initial capital commitments through six private equity funds. 930 0 obj <>/Filter/FlateDecode/ID[<6781EE974E7B2C4D9274E8F359D28E60>]/Index[915 48]/Info 914 0 R/Length 80/Prev 600062/Root 916 0 R/Size 963/Type/XRef/W[1 2 1]>>stream In 2008, Wellspring Capital, through its fund Wellspring Capital Partners, acquired Ellett. 91], F. Hewitt Grant [Docket No. Wellspring also rejected in cursory fashion the defendants argument that it is not necessarily a breach . 8h`6$67Xn@,`& The complaint must provide more than mere "labels and conclusions, and a formulaic recitation of the elements of a cause of action will not do." Accordingly, SportCo began negotiations with certain of its lenders around a potential restructuring transaction. It had previously received notification, in early 2018, that the Borrowers would default on their obligation under the Loan Agreements and the Amendments in the second quarter of 2018. Wellspring Capital is a boutique discretionary management service - with a portfolio positioned for high performance. We look forward to carrying forward that vision and continuing our success in the years ahead.". 6. The court stated that expressions of opinion are actionable under New York law, but further stated: New York courts have also stated that statements of "mere puffery", or "statements founded entirely on speculation concerning future profits from proposed business endeavors" are not actionable. App'x 143 (4th Cir. Corporate Advocacy Program. The alleged statements simply do not constitute actionable statements that can form the basis of a negligent misrepresentation claim. Wellspring Capital Management is an American private equity firm focused on leveraged buyout investments in middle-market companies across a range of industries. 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. "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."'" Why is this public record being published online? "[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.'" 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. The Partners of Wellspring constitute a long-tenured team, having worked together an average of 15 years over three funds. Specifically, Mr. Carles and Mr. Johnson represented to Prospect that a purchase of AcuSport would result in: (1) Debtors' capturing 20 to 30 percent of AcuSport sales; (2) Acquisition of $14 million worth of AcuSport's inventory at a significant discount; and (3) Realization of an immediate $7 million profit from the sale of the inventory acquired in the purchase. Law360 provides the intelligence you need to remain an expert and beat the competition. Your livelihoodand your sanitydepend . Broker-Dealers Business & Commercial Litigation Business Restructuring California Consumer Privacy Act Capital Markets Capital Solutions & Private Credit Charitable Foundations China Life Sciences Committee on Foreign Investment in the United States (CFIUS) Consumer Protection and Advertising Law Corporate & Securities Litigation Angel, Fund of Funds, Venture Capital), General contact email for the organization. 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. The Wellspring Defendants asserted all of these arguments and also asserted failure to state a claim under section 550 against certain defendants. The firm's objective is to bring partnership, experience and value creation to each investment. Contact:KekstMark Semer or Peter Hill212.521.4800, Cision Distribution 888-776-0942 Under either New York or South Carolina law, the plaintiff's third cause of action for negligent misrepresentation fails to state a claim for which relief can be granted. Prior results do not guarantee a similar outcome. Wellspring Capital Management LLC operates as a private equity firm. In the legal profession, information is the key to success. 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. This approach has historically delivered returns well above inflation. Id. Wellspring Capital Management is a leading private equity firm headquartered in New York. Prospect is a sophisticated party and, to the extent that it wanted to confirm the predictions made by Mr. Carles and Mr. Johnson were in fact accurate, it could have exercised due diligence. If you do not agree with these terms, then do not use our website and/or services. Many of the facts underlying the Wellspring decision are neither unique nor unusual. . hb```e``jb`a`\ @1V h`2q:lp10qfaqB,X3s10iH(^t1 F. Hewitt Grant asserted the lack of a triggering creditor due to Prospect Capital Corporation's knowing participation in the transfers and failure to state a claim under New York law due to lack of insolvency and under South Carolina law due to failure to plead actual fraud. Adversary Proceeding No. 92], Todd Boehly [Docket No. Regardless, market participantsand equity sponsors in particularshould view Wellspring as an important reminder as to how both process and substance matter in restructuring negotiations. Fund VI brings the firm's assets under management to more . Cases involving other matters not classified elsewhere, 890, 1890, 1990, 2890, 2899, 2999, 3375, 3890, 3896, 3899, 3999, 4890, 4896, 4999, Wellspring Capital Management, LLC; Wellspring Cap v. Barry, III et al. . Twitter Revenue, Earnings Fell About 40% in December, WSJ Says, John Malone andCharter Directors Agree to $87.5 Million Settlement, China E-Commerce Giant JD Set for $1.4 Billion Discount Spree, Between Rounds of Golf, Trumps Searching for the Perfect DeSantis Diss, Your Saturday UK Briefing: Sunak Chalks Up a Win as the Budget Looms, Harrods Shrugs Off Recession Fears as Rich Get Richer, FT Says, Wealthy NYC Family Feuds Over $258 Million Madison Avenue Sale, Tom Sizemore, 'Saving Private Ryan' Actor, Dies at 61, The Exhibit Reality TV Show PittingArtist Against ArtistIs No Masterpiece. The firm, which is based in New York City, was founded in 1995 by Martin Davis and Greg Feldman. The February 20, 2018 stated, "You're [sic] economics are going down and the risk of chapter is going up. 1997) (citing Bannister v. Hertz Corp., 316 S.C. 513 (Ct. App.

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