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Two Investors Sue Turnaround Queen Tilton for Fraud
Two investors in funds managed by Patriarch Partners LLC say the firm, headed by turnaround expert Lynn Tilton, gave them false and misleading information, Bloomberg News reports.
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Two investors in funds managed by Patriarch Partners LLC say the firm, headed by turnaround expert Lynn Tilton, gave them false and misleading information, Bloomberg News reports. Tilton is CEO of parts supplier Dura Automotive Systems Inc.
Hannover Funding LLC and Norddeutsche Landesbank Girozentrale filed the $44 million lawsuit in Manhattan on Friday, claiming the "vast majority" of information they received from Patriarch was false.
The lawsuit follows a complaint of fraud filed against Tilton and Patriarch by the U.S. Securities and Exchange Commission on March 30. They manipulated the terms of some $2.5 billion in collateralized loans and collected nearly $200 million in excessive fees for Patriarch, according to the charges.
Tilton promptly sued the SEC, claiming it is subverting her constitutional rights to a fair trial by handling its charges through an administrative proceeding rather than in federal court. The commission says its procedure is routine.
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