wellspring capital management lawsuit wellspring capital management lawsuit

It is Bavaria's largest city and the third largest city in Germany (after Berlin and Hamburg). Wellspring Capital Management has acquired 38 organizations. Otherwise you cannot get paid." Ellett Brothers LLC ("Ellett"), a South Carolina limited liability company, was a sporting goods distributor. 1994)). However, whether a fraudulent conveyance action is characterized as a tort action is unsettled. The firm prefers to invest through means of carveout, buyouts, add-on, public to private and growth capital. 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. [Amended Complaint, 51]. By teaming up with strong management, Wellspring is able to unlock underlying value and San Francisco Bay Area, Silicon Valley), Operating Status of Organization e.g. Particularly where negotiations may involve releases, indemnification, or similar provisions, be advised that the ever-present tendency for counterparties to exercise 20/20 hindsight is fully in effect. UniCourt uses cookies to improve your online experience, for more information please see our Privacy Policy. The Court addresses in this order only those arguments that clearly mandate dismissal. 2100 Geng Road, Suite 210 Palo Alto, CA 94303. articles a month for anyone to read, even non-subscribers! On March 7, 2013, the Borrowers entered into a First Amendment to the Loan Agreements (the "First Amendment"), pursuant to which Prospect loaned the Borrowers an additional $60 million. 544 and 550 and S.C. Code 27-23-10; and (3) negligent misrepresentations against Wellspring Capital, Mr. Carles, and Mr. Johnson. at 382. For the reasons set forth below, under the law of either state, the plaintiff's first and second causes of action must be dismissed. These tools have been used since the firm's inception in 1995 to generate consistent business improvement in its portfolios. 1996)). By continuing to use this website, you agree to UniCourts General Disclaimer, Terms of Service, Musk Made a Mess at Twitter. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. D.S.C. 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. Founded in 1995, Wellspring invests anywhere . A New York buyout baron has taken a leave of absence from his fund after an explosive lawsuit claimed last week that he threatened an ex-employee to keep quiet after she accused his son of raping her. 2021 by wellspring capital Management. Flipbooks. Wellspring Capital is a boutique discretionary management service - with a portfolio positioned for high performance. 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. We work with successful motivated individuals to help them achieve their investment and wealth management objectives. Will His AI Plans Be Any Different? to negotiate for release or indemnification, with the defendants arguing that such releases may have saved the post-restructuring company the expense of indemnifying the D&O Defendants in subsequent litigation. Accordingly, SportCo began negotiations with certain of its lenders around a potential restructuring transaction. [Amended Complaint, 54]. 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. Make your practice more effective and efficient with Casetexts legal research suite. 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. Since its founding in 1995, Wellspring has raised over $4 billion of initial capital commitments through . In Sheldon, the defendant, a New York citizen, assigned some personal property to Mr. Dickinson. Investments Number of Investments 2 Wellspring Capital Management has made 2 investments. (Wellspring). 2012) and West Side Fed. 112]. We believe that this breadth and depth of experience enables the team to efficiently evaluate and complete acquisition opportunities across a broad range of industries. Federal Rule of Bankruptcy Procedure 7012(b). Please see our Privacy Policy. your most valuable capital, your ultimate resource. Their most recent investment was on Jan 1, 2020, when Steele Solutions raised Federal Rule of Bankruptcy Procedure 7012(b) provides that Federal Rule of Civil Procedure 12(b) applies in adversary proceedings. . 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. 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. When it comes to helping companies that show promise, Wellspring Capital Management is overflowing with support. Regardless, market participantsand equity sponsors in particularshould view Wellspring as an important reminder as to how both process and substance matter in restructuring negotiations. Jan. 30, 2023). The company will explode Rich!" 6. Active, Closed, This describes the type of investor this organization is (e.g. Wellspring Capital Management is a leading private equity firm headquartered in New York. "); Terry v. Walker, 2006 WL 736861, at *5 (W.D. [Amended Complaint, 93]. View contacts for Wellspring Capital Management to access new leads and connect with decision-makers. From October 2017 to April 2018, Mr. Carles and Mr. Johnson sent numerous emails to representatives of Prospect, attempting to induce Prospect to agree to forego exercising its rights in the event of a default. @S1 $82N+ZJ | [Amended Complaint, 57]. 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. David Westin speaks with top names in finance about the week's biggest issues on Wall Street. D.S.C. Founded in 1995, Wellspring Capital Management is a private equity firm headquartered in New York, New York. 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 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. Time to Read: 6 minutes 2020) (quoting Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009)). 544(b). . 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. Id. New York law and South Carolina law differed as to whether such a transfer was permitted. To summarize New York law, then, it appears that opinions can be actionable, but are not always actionable. Most of them do not even contain any concrete information about the proposed AcuSport purchase or the likelihood of the Borrowers' default. 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. 101 (32). However, the Court has the discretion to sua sponte dismiss a complaint pursuant to Fed. 2007) (citations omitted). 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." See Scheidelman v. Henderson (In re Henderson), 423 B.R. Litigation. James brought a civil suit against Trump in September, alleging the Trump organization had fraudulently inflated the value of . 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. 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. App'x 143 (4th Cir. Why is this public record being published online? 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. When typing in this field, a list of search results will appear and be automatically updated as you type. Id. 85]. Instead, they may form the basis for a negligent misrepresentation claim if the party making the misrepresentation possesses some special expertise (by way of his job title or position, for example), or has some special knowledge about the particular fact that is allegedly misrepresented. About Wellspring Capital Management Wellspring Capital Management, founded in 1995, is a leading middle-market private equity firm that manages more than $4.4 billion of private equity capital. Designed By, https://www.wellspringcapital.co.uk/disclaimer. [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]. Marlow v. Oakland Gin Co. (In re The Julien Co.), 128 B.R. SaaS, Android, Cloud Computing, Medical Device), Where the organization is headquartered (e.g. Your livelihoodand your sanitydepend . We are taking this matter very seriously, and have launched an immediate internal investigation, Jeffrey Gould, Wellsprings head of marketing and investor relations, told investors last week in a note seen by Bloomberg News. v. Holmes (In re Holmes), 610 B.R. 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 [. Later emails berate Prospect's representative for failing to agree to the AcuSport purchase more quickly. The amended complaint further states that from October 2012 to October 2013, "Ellett achieved record sales and earned revenues of approximately $1.2 billion." It is not intended as and should not be construed as financial, investment, tax, legal, regulatory, or other advice. 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. We look forward to carrying forward that vision and continuing our success in the years ahead.". Wellspring Capital Management is an American private equity firm focused on leveraged buyout investments in middle-market companies across a range of industries. 3d 341, 357 (D.S.C. 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). 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. 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 Asia Pacific; EMEA; Latin America; UK Solicitors; UK Bar; United States 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. Bloomberg View columnist Barry Ritholtz looks at the people and ideas that shape markets, investing and business. The plaintiff, Ronald J. Friedman, the trustee for the SportCo Creditors' Liquidation Trust, filed an omnibus response to the motions to dismiss [Docket No. Jan. 25, 2016) (alteration original). Investment Philosophy; Target Investments; Portfolio 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. pursue new growth opportunities through strategic initiatives, operating improvements and add-on acquisitions. to hinder, delay, or defraud either present or future creditors." Cancellation and Refund Policy, Privacy Policy, and Hiding negative complaints is only a Band-Aid. Copyright 2023 Ropes & Gray LLP. Shoe designer and creative Salehe Bembury takes us on a journey from his childhood growing up in Manhattan, to an invaluable degree in industrial design, to working with some of the biggest names in fashionbefore breaking off to make his own name. (Bloomberg) -- 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."We are taking this matter very seriously, and have launched an immediate internal investigation," Jeffrey Gould, Wellspring's head of marketing and investor . 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. It is notable that the first and second causes of action are based only on South Carolina law; however, because the parties disagree as to whether South Carolina or New York law should apply, the Court will analyze the first and second causes of action under both. 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. at 321. 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. The firm's objective is to bring partnership, experience and value creation to each investment. Salaries posted anonymously by Wellspring Capital Management employees. W.D. Please Update this case to get latest docket information. 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. Id. 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. The Wellspring ruling was not appealed, nor has any trial occurred on this matter. Sav. The firm prefers to invest in the business services, industrial, packaging, healthcare services, restaurants . 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. R. Civ. (quoting Edwards v. City of Goldsboro, 178 F.3d 231, 244 (4th Cir. 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 District Court discussed the South Carolina Supreme Court's decision in Sheldon v. Blauvelt, 29 S.C. 453 (1888). Wellspring Capital, Mr. Carles, and Mr. Johnson were not insiders of AcuSport, and the amended complaint does not allege that they had any special knowledge or information about AcuSport that was not available to the public. Since its founding in 1995, Wellspring has raised over $4 billion of initial capital commitments through . Oil Producers Hand $128 Billionto Investors as Doubts Grow About Future of Fossil Fuels, Your Saturday Briefing: Trumps Comeback Plan, Wall Street Whistles Away, British Parents Turn to Home Equity to Help Young Buy Property, Japanese Unions Seek Biggest Pay Rise in 25 Years for Workers, Sorry, Fed, Most US Mortgage Rates Were Locked In During Pandemic Lows, Italys CDP Is Nearing Offer for Telecom Italia Network. Id. Wellspring Capital Management. Its success is based on a portfolio that, since inception in 2014, has delivered double digit returns on an annualised basis. In 2008, Wellspring Capital, through its fund Wellspring Capital Partners, acquired Ellett. 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. These emails can hardly be considered negligent misrepresentations. Bill Dawson is taking time off from his $2.2 billion private equity firm Wellspring Capital Management, which will investigate the claims of . While property interests are defined by state law in the absence of a compelling federal interest, the Court would look to the Bankruptcy Code in making a determination of whether property is property of the estate under section 541. They were not statements of presently existing fact. Wellspring Capital Management, LLC; Wellspring Cap. This article about a private equity or venture capital firm based in the United States is a stub. Limited partners include leading pension funds, endowments, fund of funds and family offices from the U.S., Europe and Asia. 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. Wellsprings investment professionals possess diverse and complementary backgrounds that combine valuable experience in private equity, restructuring, corporate finance, capital markets and corporate law. Contact:KekstMark Semer or Peter Hill212.521.4800, Cision Distribution 888-776-0942 2010); Saifullah v. Johnson, 948 F.2d 1282, at *1 (4th Cir. The case status is Pending - Other Pending. WELLSPRING CAPITAL MANAGEMENT LIMITED is registered in England and Wales under Company Number 12429146, PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.