Pacific Investment Management Company’s co-founder remained a partner at the company until very recently. After his departure, however, other partners at the firm claimed that billionaire damaged the company. Now, in addition to those allegations, the man is facing a lawsuit from his son’s former business partner.
The complainant met the billionaire’s son while involved in the music industry, and after some time, the two decided to start a company known as G Squared. The two each went to Monte Carlo, a firm that the co-founder of Pacific Investment does business through, and borrowed $1.5 million each to fund their new venture. In a lawsuit filed by the partner, however, it is claimed that the father began to dislike the arrangement.
The complainant claims that his partner’s father began pressuring his son to dissolve the partnership he had created. He goes on to further, stating that after first refusing to break his partnership, his partner eventually gave in to his parents’ wishes. The suit states that the complainant was left out of the business dealings of G Squared and suggests that his business partner began funneling portions of the borrowed $3 million out of the company to help advance his musical endeavors. In September, the billionaire’s son made moves to dissolve G Squared, and in his petition, he largely blamed the complainant in this suit for mismanaging the company.
As the case above shows, business dealings can sometimes lead to legal issues. When a large amount of money becomes involved and disagreements occur, companies and those who founded them, may become involved in business-related litigation. An attorney familiar with business disputes may be helpful to those facing such actions.
Source: Forbes, “Bill Gross Sued By His Son’s Business Partner“, Nathan Vardi, October 07, 2014