Federal Lawsuit Filed Against GPB Capital Holdings, Ascendant Capital, and the Brokerage Firms

An investor filed a lawsuit alleging false and misleading statements.

The Sonn Law Group is investigating allegations that brokers recommended investments in GPB Capital Holdings. If you or a family member has suffered losses investing, we want to discuss your case. Please contact us today for a free review of your case.

The investor filed the lawsuit in the US District Court of the Western District of Texas alleging violations of federal securities laws by GPB Capital, Ascendant Capital, and the Brokerage Firms.

The complaint alleges, among other things, that the Defendants:

(i) made materially misleading statements and failed to disclose material information in the offering documents and subsequent communications concerning the nature of the Funds’ businesses and distributions, the actual value of the investments, and the significant conflicts of interest of David Gentile and Jeffry Schneider, the principals of GPB and Ascendant, respectively; and 

(ii) failed to properly register the Fund offerings and the underlying securities or make required disclosures, as they were required to do given the circumstances of the offerings.

The complaint also alleges that numerous Broker Defendants selling the limited partnership interests, the Funds’ outside auditors, and the fund administrator assisted in the scheme. Importantly, the complaint does not assert claims against the specific Broker Defendants for their direct sales of the partnership interests to particular class members; rather, the complaint only asserts claims against the Broker Defendants for their substantial assistance, or aiding and abetting, of the scheme relating to these unregistered public offerings.

Those who between June 6, 2013, and October 25, 2019, inclusive (the “Class Period”), purchased or otherwise acquired interests in various GPB funds, including GPB Holdings, LP; GPB Holdings Qualified, LP; GPB Holdings II, LP; GPB Automotive Portfolio, LP; GPB Cold Storage, LP; GPB NYC Development; GPB Waste Management, LP; and GPB Holdings III, LP have certain options and should contact the Shareholders Foundation.

GPB Capital Holdings is a New York-based investment firm that offers exempt, private-placement securities. These investments inherently have a high degree of risk due to their nature as unregistered securities offerings (and without regulatory oversight). The investment firm raised $1.8 billion from investors through private placements that invested in automotive dealerships, the waste management industry, and middle-market lending. These investments were high risk and high commission (nearly 8%) private placements.

GPB Capital has been embroiled in legal disputes in the recent past. In November 2019, GPB informed investors that they would not be supplying the audited financial reports by their deadline, even though investors have been awaiting the audits since April. 

In June 2019, GPB Capital Holdings reported losses in the value of two of its investment funds: GPB Holdings II and GPB Automotive Portfolio. GPB Holdings II saw a decline in value of 25.4% and GPB Automotive Portfolio has decreased by 39%. GPB Holdings II and GPB Automotive Portfolio make up the majority of GPB Capital Holdings’ portfolio, raising $1.27 billion from investors.

GPB Capital Holdings manages the following nine private placements:

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

GPB Capital Holdings’ other funds also reported declines in an estimated value of 25% to 73%.

Contact Us Today

The Sonn Law Group is currently investigating allegations that brokers recommended investments in GPB Capital Holdings. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.