Anticipating the Flood of GBP Litigation in the Midst of the COVID-19 Pandemic

GPB Capital Holdings, LLC (GPB), with its affiliates, is the latest
failure of a multi-billion dollar private placement investment
sponsor. GPB’s implosion tracks the classic meltdown model:
there was an investor capital raise of over $1.8 billion followed
by a barrage of lawsuits for corporate control, multi-front
investigations by governments and regulators, whistleblowers
signaling egregious mismanagement, an abrupt halt in sales
and capital distributions and class action lawsuits for securities
fraud. By size alone, GPB’s collapse is among the biggest,
yet the amount of harm remains a mystery because audited
financials and fund valuations are masked in secrecy and the
SEC has not moved for a receiver to run GPB.

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