Arsenal Accused of Securities Fraud in Capitalization Deal
By Michael Lipkin
Law360, Los Angeles (November 15, 2013, 7:34 PM ET) -- Investors in a software company accused Arsenal Capital Partners Inc. on Wednesday of securities fraud, claiming the private equity firm lied to them when it promised to invest $84 million by itself into the company, according to a complaint filed in New Jersey federal court.
Arsenal pledged to pay $84 million of its own money to recapitalize TractManager Inc. and gain a 75 percent share in the newly formed TractManager Holdings LLC, according to the complaint filed by longtime TractManager investors. In exchange for the cash...