GPB Capital Automotive Lawsuits

GPB Automotive Portfolio is one of GPB Capital’s two largest funds, along with GPB Holdings II. This fund was sold to investors by more than 60 different broker-dealers, with a minimum investment of $100,000. According to InvestmentNews, GPB Automotive raised $622.1 million from wealthy investors from 2013-2018 alone.

InvestmentNews explains that, while smaller firms have sold GPB funds to investors, there are many prominent firms who have also sold GPB Automotive. These broker-dealers include:

• Royal Alliance Associates, Inc.
• Sagepoint Financial, Inc.
• FSC Securities, Corp.
• Woodbury Financial Services, Inc.

InvestmentNews reports that, together, GPB Automotive and GPB Holdings II have paid brokers $100.1 million in commissions, at a rate of 7.9%.

Our GPB Securities Lawyers have filed claims on behalf of clients of many of these broker-dealers. In fact, Silver Law Group filed the first arbitration claim against Sagepoint Financial on behalf of a GPB investor who had $400,000 invested in GPB Automotive.

If you invested in GPB Automotive through these firms, or others, you may be eligible for monetary recovery. Contact an attorney to discuss your options.

Visit our GPB Investment News page to learn more about GPB Capital and your investment.

In 2018, GPB missed its April 30th deadline to file financial statements with the Securities and Exchange Commission for GPB Automotive Portfolio and GPB Holdings II. According to a letter sent from GPB to broker-dealers who sold GPB investments, this was because

As part of the registration process, Holdings II and Automotive must produce annual audited financial statements that conform with SEC regulations and the auditing standards issued by the Public Company Accounting Oversight Board.

In the absence of audited financial statements, the letter states, GPB further delayed the filings of its registration statement, and the company suspended the redemptions of its funds. These funds include:

• GPB Automotive Portfolio
• GPB Holdings II
• GPB Holdings III
• GPB Holdings Qualified
• GPB Cold Storage
• GPB NYC Development
• GPB Waste Management Fund

Many investors remain stuck in their GPB investments for this reason.

In June of 2019, GPB admitted that by the end of 2018 its GPB Automotive fund had declined by nearly 40%. This means that investors were left with significantly less than their principle investment. Further, investors remain stuck in GPB Automotive and can’t pull their money out because GPB suspended redemptions.

GPB’s numbers are unaudited, and were generated in 2018. This means that investor’s losses may be even larger than what GPB reported. The company has yet to disclose the fund’s value over the last six months, and has still not provided any information about what caused the decline in value in the first place.

If you invested in GPB Automotive and have lost money, or remain stuck in your uncertain investment, you may be able to recover your losses. Speak with our GPB Lawyers Team to learn more about your options.

In January of 2020, GPB Capital reportedly issued a letter to some investors, stating that the the company would not be able to issue Schedule K-1 tax documents for the GPB Automotive Portfolio before tax day on April 15th. According to InvestmentNews, the K-1 form was meant to tell investors what they gained or lost in their investment during the relevant period, as well as the current value of the fund.

InvestmentNews reports that there are at least 6,353 investors or limited partners in the GPB Automotive fund. Many of these investors may still not know the true value of their investment. The news source states,

GPB has a history of not providing investors with timely information.

The GPB letter allegedly states that the company hopes to release the Schedule K-1 information by the end of July. This means that investors may have to wait months to learn the true value of their investment. Many investors may even have to file for an extension on their taxes as a result.

Our team typically handles securities claims on a contingency or “success-fee” basis. This means that you will not have to pay an hourly rate or pay out-of-pocket in advance for legal representation. If you win, the lawyer’s fee will come out of the money awarded to you. But if no money is recovered from your claim, you will owe nothing to our team for attorney’s fees or the work done on the case.

We are happy to discuss any questions related to our fees as well as different arrangements we can structure.

Scott Silver

Scott focuses his law practice on securities arbitration and litigation and plaintiff-side class action litigation, representing individual investors and institutions in claims against brokerage firms, investment advisors, commodities firms, hedge funds and others.

Eileen Epstein Carney

Eileen is involved in the firm’s securities practice and has over a decade of experience in the legal world. She received her law degree from American University in 2005.

Dave Stein

David’s advocacy has generated major recoveries for consumers impacted by financial fraud. He was named to the Top 40 Under 40 by Daily Journal and a “Rising Star in Class Actions” by Law360.

Amanda Karl

Amanda is spearheading a securities lawsuit against NantHealth concerning fraudulent statements to investors about the success of its key product.

Gibbs Law Group

Gibbs Law Group’s financial fraud and securities lawyers have more than two decades of experience prosecuting fraud. The firm has successfully litigated against some of the largest companies in the United States, and has recovered more than a billion dollars on clients’ behalf.

Gibbs Law Group attorneys have fought some of the most complex cases brought under federal and state laws nationwide, and have been recognized with numerous awards and honors for their accomplishments, including Top 100 Super Lawyers in Northern California, Top Plaintiff Lawyers in California, The Best Lawyers in America, and rated AV Preeminent (among the highest class of attorneys for professional ethics and legal skills).

Silver Law Group

Silver Law Group is a team of securities lawyers, forensic accountants, and support staff who are dedicated to helping investors recover losses through securities arbitration and litigation.

The firm is led by Scott Silver, a former Wall Street defense attorney who has been representing customers in securities and investment fraud cases since 2002. Scott is admitted to practice in New York and Florida and the firm’s FINRA arbitration attorneys represents investors nationwide.