Levin Law, P.A. Files Class Action On Behalf Of Investors In GPB Capital Funds To Seek Compensation For Losses
As reported in Law360, Levin Law, P.A. (“Levin Law”) filed a class action lawsuit in New York on behalf of investors in funds sold by GPB Capital Holdings, including: GPB Holdings, GPB Holdings II, GPB Automotive, and GPB Cold Storage. The lawsuit was filed against GPB Capital, the GPB funds, the officers and control persons of GPB and the underwriters of the funds’ offerings. The lawsuit was filed by the investor rights lawyers Levin Law, P.A., along with co-counsel and seeks to recover GPB investor losses.
GPB was launched in 2013 and became one of the fastest growing private placement firms selling shares in its funds through independent broker-dealers. GPB recently marked down the fair market value (“FMV”) of the GPB Fund down nearly seventy percent (70%). Other GPB funds have been marked down as well, some reflecting similar losses as the GPB Fund.
GPB Capital is the subject of several on-going investigations by various state and federal investigators, along with the FBI, over allegations of dubious accounting and sales practices, as well as providing inaccurate disclosures to investors.
In July 2018, InvestmentNews reported that GPB missed the deadline to file financial statements with the Securities and Exchange Commission (“SEC”) for two of its largest funds; GPB Automotive Portfolio and GPB Holdings II. In August 2018, GPB announced it was taking a break from raising new money to focus on straightening out the accounting for the two funds. In September 2018, the Massachusetts Secretary of the Commonwealth announced an investigation into 63 broker-dealer firms selling GPB Capital private placements. In November 2018, GPB’s auditor, Crowe LLP, resigned.
In December 2018, InvestmentNews reported that the SEC and the Financial Industry Regulatory Authority (“FINRA”) launched investigations into both the broker-dealers and GPB Capital itself. Most recently, it was reported that the FBI made an unannounced visit to GPB Capital’s office in New York as part of an investigation into GPB Waste NY, the New York-based trash hauler owned by GPB Capital Holdings.
The lawsuit alleges that the GPB defendants offered and sold securities in the funds though a series of false and misleading statements. It further alleges that the GPB defendants breached their duties to investors by failing to safeguard and properly invest investor money after the sale.
GPB Investors Should Contact Levin Law, P.A. for More Additional Information about Recovering their GPB Losses
If you invested in any GPB Capital fund and are interested in pursuing claims agains the brokerage firm that sold you such funds or learning more information about the class action filed against GPB Capital, contact Levin Law for a free case consultation or to obtain more information.
Brian Levin is the managing partner of Levin Law, P.A., and has both a domestic and international practice, primarily representing individual investors, institutional investors, family offices, and others in claims for investment-related wrongdoing against brokerage firms, private banks, investment advisors, commodities firms, hedge funds, and others. He also represents financial-industry professionals, including financial advisors, private bankers, hedge-fund employees, professional traders, and others in employment-related and trading claims against financial institutions. Levin Law, P.A. can be reached at firstname.lastname@example.org or 305-402-9050.