Gridiron Claims 'Corrupt' LTC Induced $50M Investment

By Matt Chiappardi (July 19, 2016, 10:27 PM EDT) -- The former leaders of bankrupt defense and municipal contractor Lakeshore TolTest Corp. fraudulently induced Gridiron Capital LLC to invest $50 million in their "badly and corruptly run business," according to a lawsuit the private equity firm filed in Delaware Chancery Court Monday.

Gridiron and several of its members contend that LTC directors and management breached the private equity firm's stock purchase agreement in several ways, including misrepresenting the depth of former chairman and CEO Avinash Rachmale's connection to a pay-to-play corruption scandal in Detroit that earned former mayor Kwame Kilpatrick a lengthy prison sentence. Gridiron also cited a nearly $7 million...

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