PHILADELPHIA, Aug. 8, 2019 /PRNewswire/ -- The investor rights lawyers at Goldman Scarlato & Penny, P.C. announce the filing of a class action lawsuit 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 filed by the investor rights lawyers at Goldman Scarlato & Penny, Jeffrey Kaplan of Dimond Kaplan & Rothstein, PA and Brian Levin of Levin Law, PA., and seeks to recover 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.
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.
What GPB Investors Should Do
If you lost money through your investments with GPB Capital, you should call attorneys Alan Rosca or Paul Scarlato for a free, no-obligation evaluation of your options, at 888-998-0530 or via email at [email protected].
The Goldman Scarlato & Penny law firm represents investors who lose money as a result of investment-related fraud or misconduct. The firm takes most cases of this type on a contingency fee basis and advances the case costs. There are no fees or costs if no recovery.
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