Prime Automotive Ex-CEO Sues to Be Reinstated
Dec. 9, 2019—David Rosenberg, ousted CEO of the Prime Automotive Group, has filed an amended legal complaint against New York-based GPB Capital Holdings, reported Press Herald.
The complaint accuses the investment firm and its affiliates of violating several pre-existing dealership franchise agreements with auto manufacturers when it fired him in September. It alleges that those dealerships are now at risk of losing their franchise status.
Rosenberg was fired a few months after he sued GPB Capital in July in a Massachusetts court, accusing it of financial misconduct. Rosenberg filed a lawsuit against GPB Capital in July, accusing the company of operating an illegal Ponzi scheme.
In November, another GPB Capital investor filed a federal lawsuit accusing the company of operating an illegal Ponzi scheme. The lawsuit, which is seeking class-action status, accuses the company of misleading at least 2,000 investors into handing over a total of more than $1.8 billion.