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. Note: This site is for informational purposes only. The adviser's REGISTRATION status is listed below. 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. PLEASE SEE THIS LINK FOR FULL DISCLAIMER: https://www.wellspringcapital.co.uk/disclaimer. 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. W.D. For example, the October 27, 2017 email stated, "The only way to optimize is to merge with Acusport." Innovative Custom Brands, Inc. v. Minor, 2016 WL 308805, at *2 (S.D.N.Y. SaaS, Android, Cloud Computing, Medical Device), Where the organization is headquartered (e.g. Even California Democrats don't want Newsom to run for president We work with successful motivated individuals to help them achieve their investment and wealth management objectives. Id. 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." 19-80071-DD (Bankr. The case status is Pending - Other Pending. 92], Todd Boehly [Docket No. 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. REGISTRATION STATUS . R. Civ. It is not intended as and should not be construed as financial, investment, tax, legal, regulatory, or other advice. Prior results do not guarantee a similar outcome. The defendants' motions to dismiss are granted. These facts, as recited in the complaint, are taken as true for purposes of the motions to dismiss. However, the garage actually had only 402 parking spaces. Will His AI Plans Be Any Different? 101 (32). The firm, which is based in New York City, was founded in 1995 by Martin Davis and Greg Feldman. Wellspring Sues Insurers To Fight Claims It Tanked Gun Seller Div. Wellspring Capital Management is a mega-sized private equity firm that focused on a variety of transaction situations. Wellspring, 2021 WL 4823513, at *10. Fund VI brings the firm's assets under management to more . Wellspring also rejected in cursory fashion the defendants argument that it is not necessarily a breach . Wellspring Capital Management Crazy 8 was started in August 2007. 70% of dealmakers say that investment managers share culpability for 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. D. Del. In Sheldon, the defendant, a New York citizen, assigned some personal property to Mr. Dickinson. . In Ashmore for Wilson, the District Court considered the question of how a fraudulent conveyance claim should be characterized for conflict of law purposes. 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. 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. Revenue: $500 million to $1 billion (USD) Competitors: Unknown. 23, 2006) (stating that some courts characterize fraudulent conveyance actions as tort actions, while others characterize them as matters in equity). This approach has historically delivered returns well above inflation Our clients 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. See Francis v. Giacomelli, 588 F.3d 186, 192 (4th Cir. Seth Pearson - Managing Director - Private Equity - York Capital These tools have been used since the firm's inception in 1995 to generate consistent business improvement in its portfolios. 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. Trump legal team requests six-month delay in New York civil lawsuit They are not actionable. hb```e``jb`a`\ @1V h`2q:lp10qfaqB,X3s10iH(^t1 . Fax: 877 376-7003. And the best part of all, documents in their CrowdSourced Library are FREE. 2021 by wellspring capital Management. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. In early 2018, Wellspring Capital notified SportCo's secured lenders that SportCo would default on a $4.7 million interest payment due in the second quarter of 2018. 915 0 obj <> endobj The alleged statements simply do not constitute actionable statements that can form the basis of a negligent misrepresentation claim. Ashmore for Wilson v. Dodds, 262 F. Supp. 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." If our offering sounds like something you would like to discuss, please get in touch on any of our contact details or the form below. Headquarters Location Lever House 390 Park Avenue New York, New York, 10022, United States WELLSPRING CAPITAL MANAGEMENT ( CRD # 135455/SEC#:801-64341 ) WELLSPRING CAPITAL MANAGEMENT, WELLSPRING CAPITAL MANAGEMENT, INC. View latest Form ADV filed Part 2 Brochures. Wellspring Capital Acquires SupplyOne | Markets Insider At all times relevant to these claims, Wellspring Capital controlled (a) Wellspring Capital Partners It is not unusual for an entity facing distress to engage with their stakeholders and to negotiate any number of transaction alternatives and terms. Jan. 30, 2023). 2022 Wellspring Capital Management Group LLC |. 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. Menu Home; Rankings. Asia Pacific; EMEA; Latin America; UK Solicitors; UK Bar; United States Since its founding in 1995, Wellspring has raised over $4.0 billion of initial capital commitments through six private equity funds. Wellspring Capital Management Acquires Cadence Petroleum Group Sav. Id. 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. You can help Wikipedia by expanding it. $46H$DrGHi`0I"DE$"J(aH! In re Merritt Dredging Co., Inc., 839 F.2d 203, 205 (4th Cir. Wellspring Capital Management is a leading private equity firm headquartered in New York. hbbd``b`u@IHEX 3X "2A`V @B'Hl``bdV8 2h Sav. Ellett used $54,860,549.74 of the First Amendment loan proceeds to fund distributions to the Transferee Defendants. Id. 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. In 2010, Bain Capital acquired the company for US$1.8 billion. Certain state securities regulatory authorities have similar exemptions based on . 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. Wellspring Capital Management. 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 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. The District Court stated that "[w]hether a fraudulent conveyance claim should be characterized as a tort action is uncertain and disputed among American jurisdictions." 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 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. A constructive fraudulent conveyance exists under New York law if the conveyance was made without fair consideration and "(1) the transferor is insolvent or will be rendered insolvent by the transfer in question; (2) the transferor is engaged in or is about to engage in a business transaction for which its remaining property constitutes unreasonably small capital; or (3) the transferor believes that it will incur debt beyond its ability to pay." [Amended Complaint, 93]. This Supreme Court Case Could Redefine Crime, YellowstoneBackers Wanted to Cash OutThen the Streaming Bubble Burst, How Countries Leading on Early Years of Child Care Get It Right, Female Execs Are Exhausted, Frustrated and Heading for the Exits, No Major Offer Expected on Childcare in UK Budget, Biden Gives Medal of Honor to Trailblazing Special Forces Member, Climate Change Is Launching a MutantSeed Space Race, UK Braces for Rare Weather Event That Risks Late-Winter Freeze, This Former Factory Is Now New Taipeis Edgiest Project, What Do You Want to See in a Covid Memorial? Lawsuit: Wellspring CEO Told - Institutional Investor [Amended Complaint, 37, 40]. 'Ov}b0. 3d 341, 357 (D.S.C. v. Trimble Navigation Ltd., 484 F.3d 700, 705 (4th Cir. 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." 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, through defendants Mr. Carles and Mr. Johnson, allegedly represented to Prospect that: (1) Ellett could purchase assets of AcuSport for $14.8 million; (2) the purchase would result in the Debtors' capturing 20% to 30% of AcuSport sales; (3) the Debtors could acquire $14 million of AcuSport inventory at a substantial discount; and (4) Ellett would immediately realize a $7 million profit on the sale of the inventory acquired in the purchase. 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. Wellspring Capital Management, founded in 1995, is a leading middle-market private equity firm that manages more than $3 billion of private equity capital. WELLSPRING CAPITAL MANAGEMENT, founded in 1995, is a middle-market private equity firm that has approximately $2 billion of private equity capital under management. Id. The assignment was executed in New York, but the personal property was located in South Carolina at the time the assignment was executed. 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. We have interesting videos for you to watch on my site. 24. You can review interesting Flipbooks on my site. 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. Wellspring Capital Management, founded in 1995, is a middle-market private equity firm that has approximately $2 billion of private equity capital under management. The firm's objective is to bring partnership, experience and value creation to each investment. Wellspring Capital Management - Wikipedia In Fall 2018, SportCo Holdings, Inc. (SportCo) was facing severe financial distress. The plaintiff's first and second causes of action are based on 11 U.S.C. Wellspring Capital manages an investment portfolio of between 10 and 15 international stocks. Id. The court considered whether the plaintiff had proved the tort of innocent misrepresentation. This is the best way to manage and repair your business reputation. Wellspring Capital Management LLC - Company Profile and News These emails may be a lot of things, but negligent misrepresentations they are not. There are different definitions of insolvency. 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. An actual fraudulent conveyance is any "conveyance made . 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. 609, 614 (Bankr. Corp. v. Twombly, 550 U.S. 544, 555 (2007)). Contact:KekstMark Semer or Peter Hill212.521.4800, Cision Distribution 888-776-0942 Wellspring Capital Management Closes Fund VI at $1.415 Billion 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. 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. ), Create custom alerts for specific article and case topics and, I took a free trial but didn't get a verification email. The Wellspring Defendants asserted all of these arguments and also asserted failure to state a claim under section 550 against certain defendants. 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. 91], F. Hewitt Grant [Docket No. Haynsworth Sinkler Boyd, P.A. Id. Wellspring Capital Management Salaries - Glassdoor See Sheehan v. Saoud, 650 Fed. James Chan - Spare Room Tycoon - The Seventy Lessons of Sane Self Blackstone to Acquire Tradesmen International from Wellspring Capital 2020) (quoting Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009)). Make your practice more effective and efficient with Casetexts legal research suite. Founded in 1995, Wellspring Capital Management is a private equity firm headquartered in New York, New York. While New York law and South Carolina law have slightly different tests for avoiding constructive fraudulent conveyances, there exists a common thread which is not satisfied hereinsolvency at the time of the transfer. Despite that agreement in principle, it was alleged in relevant part that: Unable to agree on the release and indemnification issue, SportCos out-of-court restructuring failed, and SportCo defaulted on its funded debt shortly thereafter. S.D. The defendants argue that Prospect is a subsequent creditor, because it had knowledge of and approved of the distributions prior to them being completed. Wellspring Capital Exits Strategic Investment in Great Lakes Caring Wellspring CEO Takes Leave After Son Accused of Rape in Lawsuit 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. All rights reserved. 987, 999-1000 (Bankr. When typing in this field, a list of search results will appear and be automatically updated as you type. Full title:Ronald J. Friedman, as the trustee for the SportCo Creditors' Liquidation, Court:UNITED STATES BANKRUPTCY COURT DISTRICT OF SOUTH CAROLINA. with actual intent . 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.

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