Wolf Popper LLP Files Derivative Action on Behalf of GPB Partnerships
On January 28, 2020, Wolf Popper LLP, on behalf of two investors of GPB Holdings II, LP and GPB Automotive Portfolio, LP (the “Partnerships”), filed a derivative action against the Partnerships’ general partner, GPB Capital Holdings, LLC (“GPB”) and certain affiliated individuals. As explained in the investors’ complaint, “this case concerns the mismanagement of one of the nation’s largest automobile dealership groups by scoundrels who never should have been allowed to run a legitimate company.” Among other things, the investors allege that the defendants have engaged in rampant self-dealing using Partnership assets; disbanded GPB’s audit committee; refused to disclose the reason for GPB’s auditor’s resignation; failed to provide investors with the Partnerships’ annual audited financial statements; and, according to a federal indictment, hired as a chief compliance officer an individual with inside knowledge of an SEC probe into GPB’s misconduct.
The complaint is based in part on evidence obtained by Wolf Popper pursuant to an investigation commenced under 6 Del. C. § 17-305, a statute allowing limited partners access to certain internal partnership documents.
The case is Lipman, et al. v. GPB Capital Holdings, LLC, case number 2020-0054-SG in the Delaware Court of Chancery.