Embattled GPB Capital Squandered $1.3B, Investors Claim

Law360 (August 8, 2019, 5:37 PM EDT) -- Already facing regulatory probes and related litigation, GPB Capital Holdings LLC was hit with two more lawsuits in the past week from investors dismayed by the turmoil that has shrouded the asset management firm since last year.

The most recent, filed in New York state court on Tuesday, claims that GPB raised more than $1.3 billion on promises that the money would be used to buy retail automobile dealerships, but failed to disclose weaknesses in the firm's internal controls that let investor money be either misused or misappropriated.

"As a result of such faulty control systems and due diligence processes, the...

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