Investors Pursue Legal Action Following Another Delay in Release of Audited Financial Statements
OAKLAND, Calif.–(BUSINESS WIRE)–GPB Capital admitted yesterday that it will not provide audited financial statements and reports to its investors by the end of September 2019, as was previously promised. Gibbs Law Group is pursuing legal claims on behalf of investors of GPB Capital Funds, including GPB Automotive Portfolio; GPB Holdings I; GPB Holdings II; GPB Waste Management Fund; GPB Cold Storage; and GPB NYC Development. Our GPB Capital lawsuit involves claims against the brokerage firms that sold GPB funds to investors.
To speak privately with an attorney regarding our GPB investigation, click here.
On September 10, 2019, many GPB investors received letters informing them that “new challenges” have impacted GPB’s ability to provide audited financial statements to investors by September 30, 2019, as previously promised. GPB now claims it will provide audited financial statements by the end of 2019, and attributed the delay to a number of factors, including:
- The need to restate its 2015 and 2016 financial statements;
- The resignation of its auditor;
- Several regulatory investigations;
- A lawsuit filed against GPB by a former executive.
This delay comes months after InvestmentNews reported that GPB Capital announced sharp declines in the values of its investment funds. According to the article, GPB revealed that at the end of 2018, its funds had declined in value by 25% to 73%, with its two largest funds declining by nearly 40% and 25.4% respectively. The company has still not revealed the true and current value of the funds for 2019.
GPB has reportedly raised more than $1.8 billion in investor funds across its various private placement offerings. It has been reported that brokers received more than $100 million in commissions from selling investments in GPB funds to investors and that brokers were incentivized to sell the GPB Funds because of the high commissions and fees they earned. More than 60 brokerage firms sold GPB to investors, including Sagepoint Financial, Woodbury Financial Services, FSC Securities and Advisor Group.
What Should GPB Investors Do?
If you invested in a GPB fund, you may be able to recover your losses. Visit our website or contact our securities team directly at (888) 410-2925 to speak privately with a securities attorney to learn about your legal options.
About Gibbs Law Group
Gibbs Law Group is committed to protecting the rights of investors and consumers nationwide who have been harmed by corporate fraud and misconduct. The firm has recovered over a billion dollars for its clients against some of the world’s largest corporations, and our attorneys have received numerous honors for their work, including “Titans of the Plaintiffs Bar,” “Best Lawyers in America,” “Top Plaintiff Lawyers in California,” “California Lawyer Attorney of the Year,” “Top Class Action Attorneys Under 40,” “Consumer Protection MVP,” and “Top Cybersecurity/ Privacy Attorneys Under 40.”
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CONTACT: EILEEN EPSTEIN