Rosenberg Files Prime Automotive GPB Capital Lawsuit

GPB Capital Prime Automotive Lawsuit

In the latest GPB Capital news, David Rosenburg filed a lawsuit to regain control of the auto-dealership portion of GPB Capital called Automile Holdings and Prime Automotive.  This comes nearly a month after the arrest of GPB Capital’s chief compliance officer.  Over the year news has played out a like a HBO crime drama series with raid by the FBI and investigations by the SEC and FINRA.

Just last week a compliance officer for a broker dealer made allegations that she was fired for not approving sale of GPB Capital products.  She also says people are following her and tampering with her car.

Rosenberg sold his majority stake in Prime Motor to GPB Capital for $235 million in 2017.  He is alleging that Kevin Westfall, the new GPB chairman, lacks moral character.  GPB Capital Attorney Tab Rosenfield said Rosenberg is a disgruntled employee.

investment fraud lawyersRecover Your Investment Losses. Please Contact Haselkorn & Thibaut at 1 888-628-5590 or visit InvestmentFraudLawyers.com for a free consultation on recovering your investment losses.

GPB Capital investors are worried and seeking answers after delays in the release of the financial statements.  Many have filed lawsuits in attempt to recover losses and get answers.

According to Matthew Thibaut, Esq. of Haselkorn & Thibaut, P.A., a law firm representing investors nationwide, “… none of this reflects positively on GPB, not the auditor withdrawal, not the pending litigation, not the ongoing state and federal investigations, and certainly not when a recently hired Chief Compliance Officer is charged with alleged wrongdoing including obstruction of justice.”

Thibaut’s firm has opened a hotline for GPB Capital investors to call for a free review of their portfolio. Please visit www.InvestmentFraudLawyers.com or call 1-888-628-5590 to speak privately to a securities attorney to learn about your legal options.

ABS REPORT

Turning to Markets….

American investors are focused on US trade relations with China and EU countries. Today, the market was inspired by a report by Bloomberg, which, referring to people familiar with the situation, confirmed that the final approval of the first phase of the trade transaction was approaching. There is currently a discussion about which American tariffs will be canceled under the contract. Also, Bloomberg sources indicated that the exchange of sanctions due to the Hong Kong problem did not affect the course of consultations, and the words of President Trump about a possible transfer of the deal to 2020 should not be taken as a hint of a deadlock in the negotiations.

Despite the positive signals, the situation in world trade remains difficult, since detente in US-Chinese relations is accompanied by an aggravation of the US-EU trade conflict. The leaders of France and the European Union promised to respond to the introduction of US duties on French exports, and some EU countries are also ready to introduce a digital tax. Meanwhile, US Secretary of Commerce Wilbur Ross reiterated the possibility of introducing higher tariffs on European automobile export.

During the day, investors are waiting for the publication of November data on employment from ADP and ISM Non-manufacturing PMI. It is predicted that the employment rate may grow from 125K to 140K, and PMI may drop from 54.7 to 54.5 points.

Eurozone

Services PMI in the EU and Germany published today turned out to be positive. The German indicator rose from 51.6 to 51.7 points, while the EU index decreased less significantly than the market expected, from 52.2 to 51.9 points. However, the data did not lead to the strengthening of EUR, as investors fear the intensification of trade confrontation between the US and the EU. The US administration intends to impose duties on French exports worth $2.4 billion but the response measures, apparently, will be taken immediately by all EU countries. The trial of the new conflict may be transferred to the WTO.  EUR is weakening against GBP and USD but has ambiguous dynamics against JPY.

United Kingdom

November Service PMI data, which is the key one for the UK, were poor. Although the indicator fell less significantly than the market expected, from 50.0 to 49.3 points, it reentered a stagnation zone. Service company executives attribute the decline in business activity to the delay in launching new projects due to political uncertainty. Despite the negative data, GBP continues to strengthen amid market expectations for the Conservative Party to win the parliamentary elections and ratify the deal with the EU. GBP today is strengthening against its main competitors – EUR, JPY, and USD.

Japan

The November Service PMI of Japan, released today, was positive. Although the indicator did not reach market expectations, having increased from 49.7 to 50.3 points, it still returned to the expansion zone. The service sector continues to offset production cuts, allowing the Japanese economy to maintain growth.  JPY is weakening against USD and GBP but has an ambiguous dynamics against EUR.

Australia

Australian investors are focused on the publication of data on Q3 Australia’s GDP. The economy slowed down from 0.5% to 0.4% QoQ and increased from 1.4% to 1.7% YoY. GDP is under pressure of low growth of consumption among households, despite the tax exemptions announced by the Australian government. November Service PMI data were negative. The indicator fell from 50.1 to 49.7 points and for the first time in three months entered the stagnation zone.  AUD is weakening today against its main competitors – USD, GBP, EUR, and JPY.

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