wellspring capital management lawsuit

Our returning and new limited partners share our belief in the unique value proposition that Wellspring brings to the investment process, with our focus on strategic partnership and tailored approach to each investment. (Wellspring). Bill Dawson is taking time off from his $2.2 billion private equity firm Wellspring Capital Management, which will investigate the claims of Dawson's threats, according to an internal memo. In the legal profession, information is the key to success. Further, if the statement is solely a speculative prediction about some potential business venture or course of action being contemplated, it is not actionable. Wellspring Capital Management is a leading private equity firm headquartered in New York. Founded in 1995, Wellspring invests anywhere . Fax: 877 376-7003. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. To this end, Wellspring reinforces two key principles in particular: We encourage you to contact your Ropes & Gray team to discuss these matters more fully. 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. Wellspring CEO Takes Leave After Son Accused of Rape in Lawsuit The firms objective is to bring partnership, experience and value creation to each investment. 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 Section 544(b) states: The defendants' motions assert numerous arguments in support of the assertion that the Court must dismiss the plaintiff's causes of action. articles a month for anyone to read, even non-subscribers! 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. The principal and lead portfolio manager at Wellspring Capital is Avrohom Neumann. Oct. 14, 2021) (Stickles, J.) An action with multiple causes of action was commenced by Prospect Capital Corporation in South Carolina state court and was removed to this court on September 6, 2019. Will Others Follow? endstream endobj 916 0 obj <>/Metadata 258 0 R/Pages 913 0 R/StructTreeRoot 384 0 R/Type/Catalog>> endobj 917 0 obj <>/MediaBox[0 0 612 792]/Parent 913 0 R/Resources<>/Font<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI]>>/Rotate 0/StructParents 0/Tabs/S/Type/Page>> endobj 918 0 obj <>stream The origins of Wellspring Philanthropic Fund are shrouded. If you do not agree with these terms, then do not use our website and/or services. 2007) (citations omitted). Designed By, https://www.wellspringcapital.co.uk/disclaimer. Ellett Brothers LLC ("Ellett"), a South Carolina limited liability company, was a sporting goods distributor. Wellspring Capital Management, founded in 1995, is a middle-market private equity firm that has approximately $2 billion of private equity capital under management. Wellspring Capital Management is a leading middle-market private equity firm headquartered in New York. 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. James Chan - Spare Room Tycoon - The Seventy Lessons of Sane Self Wellspring Capital Management is a leading middle-market private equity firm headquartered in New York. Wellspring Capital Management, LLC; Wellspring Cap v Barry, III et al However, whether a fraudulent conveyance action is characterized as a tort action is unsettled. 8h`6$67Xn@,`& In Fall 2018, SportCo Holdings, Inc. (SportCo) was facing severe financial distress. endstream endobj startxref 0 at 358. Wellspring targets investments with the following characteristics: ), Create custom alerts for specific article and case topics and, I took a free trial but didn't get a verification email. Over the past 20 years, Wellspring has invested in over 35 platform investments across . Wellspring Capital Management Acquires Cadence Petroleum Group Use tab to navigate through the menu items. Id. Wellspring Capital - Middle Market Private Equity There are also no allegations concerning expenses. Mr. Friedman was substituted as the plaintiff on January 10, 2020. Since its founding in 1995, Wellspring has raised over $4.5 billion of initial capital commitments through six private equity funds. James brought a civil suit against Trump in September, alleging the Trump organization had fraudulently inflated the value of . By Zachary Zagger (July 31, 2020, 9:56 PM EDT) -- 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 millions of dollars from gun seller United Sporting Cos. Inc., which blamed its bankruptcy on Donald Trump's win in the 2016 election. Access to case data within articles (numbers, filings, courts, nature of suit, and more. Another email stated, in part: "Gotta get your interest? Haynsworth Sinkler Boyd, P.A. Andrew Kupchik argued dismissal was necessary due to Prospect's ratification and/or consent to the distributions, due to failure to state a claim under New York law because of lack of insolvency and failure to state a claim under South Carolina law due to failure to plead actual fraud, due to the expiration of the statute of limitations on the fraudulent conveyance claims, and due to failure to plead the existence of a triggering unsecured creditor. 91], Andrew Kupchik [Docket No. McDermott Will & Emery LLP > San Francisco > United States | The Legal Litigation. 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). WELLSPRING CAPITAL MANAGEMENT ( CRD # 135455/SEC#:801-64341 ) WELLSPRING CAPITAL MANAGEMENT, WELLSPRING CAPITAL MANAGEMENT, INC. View latest Form ADV filed Part 2 Brochures. Corporate Advocacy Program. 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. 'Ov}b0. The plaintiff does not dispute that the amended complaint does not plead actual fraud, and it clearly does not. Wellspring Capital and the D&O Defendants grossly and recklessly mismanaged the business and carried out their respective roles in a manner that was devoid of reasonable inquiry and diligence in dereliction of their fiduciary duties to Prospect as a creditor of the increasingly insolvent enterprise. Wellspring has the flexibility to complete transactions ranging from $100 million to as much as $1.5 billion in total value in a wide range of industries. 1996)). It featured lower-priced clothing and was Gymboree's direct competitor for The Children's Place and Old Navy.. The assignment was executed in New York, but the personal property was located in South Carolina at the time the assignment was executed. 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. hXO8WtVH,~W"I/ {;N7'0HAA0%`Ih5L!p! 23, 2006) (stating that some courts characterize fraudulent conveyance actions as tort actions, while others characterize them as matters in equity). IAPD - Investment Adviser Public Disclosure - Homepage Their most recent investment was on Jan 1, 2020, when Steele Solutions raised I Shall [Not] Be Released: Wellspring, Director Releases, breached their duty of care, since the directors refused to reasonably maximize corporate value by killing the restructuring on account of releases/indemnity (, breached their duty of loyalty, since they placed their own self-interests above those of their fiduciaries [. 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. About Wellspring Capital Management Wellspring Capital Management is a leading private equity firm headquartered in New York. Angel, Fund of Funds, Venture Capital), This describes the stage of investments made by this organization (e.g. Hiding negative complaints is only a Band-Aid. It is not intended as and should not be construed as financial, investment, tax, legal, regulatory, or other advice. App'x 143 (4th Cir. Wellspring Capital Management LLC operates as a private equity firm. The firm functions as a strategic rather than tactical partner, providing management teams with top-line support, M&A experience and financial expertise, and access to resources. Ellett used $54,860,549.74 of the First Amendment loan proceeds to fund distributions to the Transferee Defendants. Wellspring is a cautionary tale for the fiduciaries of a distressed or potentially distressed corporationparticularly with respect to negotiations around release and/or indemnification provisions for those same fiduciaries. *aUQBT&1#J$8Q)=WE9M'v1s_)GG+.kbN;yELi.UD1N{f'u$y`'GCJfS;4yXwbW${%^tcxG2}+/P@U `a$b6? 2012) and West Side Fed. 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. at 385. In Ashmore for Wilson, the District Court considered the question of how a fraudulent conveyance claim should be characterized for conflict of law purposes. @S1 $82N+ZJ | Wellspring Capital Management LLC - Company Profile and News Wellspring Capital Management is a leading private equity firm headquartered in New York. Id. The 2011 Wellspring Capital Partners V LP was fully invested at $1.2 billion and has generated positive returns for its investors to-date. The 2011 Wellspring Capital Partners V LP was fully invested at $1.2 billion and has generated positive returns for its investors to-date. 2021 by wellspring capital Management. The firm, which is based in New York City, was founded in 1995 by Martin Davis and Greg Feldman. The seller, PE outfit Levine Leichtman Capital Partners, purchased the company in 2015. Since its founding in 1995, Wellspring has raised over $4 billion of initial capital commitments through . (quoting Edwards v. City of Goldsboro, 178 F.3d 231, 244 (4th Cir. hb```e``jb`a`\ @1V h`2q:lp10qfaqB,X3s10iH(^t1 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. This matter is before the Court on motions to dismiss filed by the defendants Wellspring Capital Management, LLC ("Wellspring Capital"), Wellspring Capital Partners IV, L.P. ("Wellspring Capital Partners"), WCM Genpar IV, L.P., WCM Genpar IV GP, LLC (collectively, the "Wellspring Defendants") [Docket No. However, the garage actually had only 402 parking spaces. 1984) for the proposition that under New York law, opinions are actionable in a negligence context. At all times relevant to these claims, Wellspring Capital controlled (a) Wellspring Capital Partners In 2008, Wellspring Capital, through its fund Wellspring Capital Partners, acquired Ellett. Wellspring CEO takes leave after explosive rape allegations against his son 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 emails, often using colorful language and harassing tones, essentially represent to Prospect that if the AcuSport transaction is not completed, Prospect will not get paid on its obligations. Fund VI brings the firm's assets under management to more than $4.4 billion. wikipedia.en/Vatterott_College.md at main chinapedia/wikipedia.en at 613-14. The plaintiff's first and second causes of action both assert claims for fraudulent conveyances pursuant to 544(b) and S.C. Code 27-23-10. 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. Will His AI Plans Be Any Different? I Shall [Not] Be Released: Wellspring, Director Releases, and the Duty 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. The plaintiff responds that the express terms of the choice of law provisions provide that the clause applies only to the parties to the Loan Agreements and the Amendments and that the defendants' indirect connection to the parties to the agreements, and the nature of their received benefit, a distribution, are not sufficient to render them third-party beneficiaries of the Loan Agreements and the Amendments. Even California Democrats don't want Newsom to run for president 2018) (distinguishing cases where the courts dismissed negligent misrepresentation claims based on "puffery" or founded solely on speculative statements regarding future profits as a result of proposed transactions, and finding that the misrepresentations at issue were actionable because they involved present facts). They are not actionable. Try our Advanced Search for more refined results. The December 26, 2017 email stated, "So you will waive [your interest payments]. Asia Pacific; EMEA; Latin America; UK Solicitors; UK Bar; United States You can help Wikipedia by expanding it. 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. Industry: Investment & Asset Management. 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. Va. June 8, 2011) (acknowledging that Maryland law is not clear regarding whether a fraudulent conveyance action sounds in tort, but concluding that "given that the gravamen of the fraudulent conveyance claim is the wrongfulness of the conveyance and the injury to the creditor, rather than balancing equities or fairness, it is appropriate to conclude that fraudulent conveyance claims sound in tort. Wellspring has one of the best track records in middle-market private equity; its people, capital and reputation bring certainty to transactions. It identifies undervalued companies whose share price does not properly reflect the true value of the business. 2016) (citing numerous cases, recognizing disagreement among courts regarding whether fraudulent conveyance action is a tort action); MainStreet Bank v. Nat'l Excavating Corp., 791 F. Supp. 544 and 550 and S.C. Code 27-23-10; and (3) negligent misrepresentations against Wellspring Capital, Mr. Carles, and Mr. Johnson. For example, the October 27, 2017 email stated, "The only way to optimize is to merge with Acusport." New York law requires insolvency at the time of the transfer, and South Carolina law requires insolvency both at the time of the transfer, and at the time the creditor seeks to collect the debt. The Partners of Wellspring constitute a long-tenured team, having worked together an average of 15 years over three funds. REGISTRATION STATUS. Password (at least 8 characters required). The firm, which is based in New York City, was founded in 1995 by Martin Davis and Greg Feldman. Wellspring Capital Acquires SupplyOne | Markets Insider Designed By BM Designs. P. 12(b)(6) provides for dismissal of an action if the complaint "fail[s] to state a claim upon which relief can be granted." Contact:KekstMark Semer or Peter Hill212.521.4800, Cision Distribution 888-776-0942 R. Civ. David R. Duncan US Bankruptcy Judge District of South Carolina. Flipbooks. Phone: 650 729-8626. Copyright 2023 Ropes & Gray LLP. 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 . Probitas Partners acted as exclusive placement agent and Paul, Weiss, Rifkind, Wharton & Garrison LLP as legal counsel with respect to formation of Fund VI. Aug. 27, 2020). Wellspring Capital Management Closes Fund VI at $1.415 Billion The firm prefers to invest through means of carveout, buyouts, add-on, public to private and growth capital. We are motivated and incentivised to succeed. Working at Wellspring Capital Management | Glassdoor Defendant Bernard Ziomek is in default in this matter. 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. 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. Already a subscriber? 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.

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