opengate capital lawsuit

Even as hundreds of American workers have suffered from OpenGates schemes, Andrew Nikou, the OpenGate founder and CEO, has not faced any meaningful financial or social consequences for repeated business failures at the hands of his firm. Before the deal even closed, executives at OpenGate met with PennySaver employees and touted their roughly 20 other acquisitions in a PowerPoint presentation obtained by the Register. In 2012, Nikou was a recipient of The M&A Advisor's "Top 40 Under 40" award,[4] for the West Region. [12] In 2010, Nikou was behind the OpenGate bid for Newsweek, owned by the Washington Post Company, but the firm did not acquire the publication.[13]. On 06/01/2015 MALLOY MITRA filed a Labor - Other Labor lawsuit against OPENGATE CAPITAL LLC. To date, the firm has completed more than 75 transactions, including . See here for a complete list of exchanges and delays. OpenGate heads for third fund launch targeting up to $700m Then, their final checks bounced. In the last 16 years, Andrew's leadership has grown OpenGate into a global company with a reputation for innovation and deal-making. Thermo Fisher, the world's largest maker of laboratory equipment and scientific instruments, agreed to acquire Life Technologies Inc. Former employees of OpenGate Capital portfolio company Hamilton Scientific have filed a class action complaint alleging the firm and company owe them compensation after the company . OpenGate has had successes. in Texas, Arkansas, and Wisconsin, who worked for the laboratory furniture company Hamilton Scientific. The spokesman, who did not want to be identified because of pending litigation, said the company warned workers about the possibility of a plant closure when it learned of the eviction threat. Three days later, the company filed for Chapter 7 bankruptcy liquidation. Hufcor employees will not be the last to suffer at the hands of OpenGate, and nothing will change unless the firm is held accountable for its ruthless profiteering. OpenGate gets sued for alleged WARN Act violations. Location. OpenGate Capital is a Los Angeles based private equity firm that specializes in acquiring and optimizing lower-to-middle market businesses across North America and Europe. These people have no idea what theyre in for, said Joanna Storm, whose husband, Robert, was abruptly laid off from OpenGate-owned Golden Guernsey Dairy in Waukesha, Wis., after working there 19 years. However, after making a few payments, Fusion defaulted on a loan from the state of Connecticut, said State Sen. Cathy Osten, who is also the first selectman of Sprague the small town where Fusion was the main employer. How to avoid leaving money on the table, Congressional investigators blame airlines for most flight cancellations, First Republic Bank stock plunges to record low as rescue plan proves elusive, Fed faults Silicon Valley Bank execs and itself in bank failure. [28][29], Past closures also included PennySaver USA and Hamilton Scientific. Throughout the first year they started to liquidate assets selling property and equipment. The goal of this section is to provide consumers with a comprehensive resource on class action and mass tort lawsuits. . EverZinc is headquartered in Lige . To date, OpenGate has laid off 678 California workers from the Pennysaver classified ad magazine, 100 Wisconsin workers at its Golden Guernsey dairy plant, 140 employees of the Connecticut boxboard company Fusion Paperboard, and nearly 200 employees in Texas, Arkansas, and Wisconsin, who worked for the laboratory furniture company Hamilton Scientific. Instead, he sits on numerous boards and hes even been in talks about a. built around his private equity business. A state claim for wages was filed in the dairys pending Delaware bankruptcy case. They cut salaries. [30][31][32], Nikou sits on the Board of YELLOW, the non-profit organization founded by Pharrell Williams. E-FILING TRANSACTION 2392305 RECEIVED ON 07/15/2015 . Andrew Nikou - Founder, CEO & Managing Partner - OpenGate Capital OpenGate Capital Management has sued the British parent company of a German industrial engine-maker to recover fees after the private equity firm's 347 million ($480 million) deal to buy the . OpenGate Capital General Information. Post-closing, Open Gate employee Andrew Nikou was appointed as the sole member of Golden Guernsey. OpenGate Capital Company Profile | Management and Employees List MALLOY MITRA VS OPENGATE CAPITAL LLC | Court Records - UniCourt She sharply criticized OpenGate Capital for the closure. OpenGate notes that its business model is to take chances on faltering companies, and that carries inherent risks. And employees became increasingly worried when PennySavers CEO, vice president of finance and the vice president of human resources all quit, Buckley said. Barry L. Kasoff, president of Realization Services who served as PennySavers chief restructuring officer, denied the assertion and said the decision to close with little notice was dictated by Capital One. [9], In 2019, OpenGate purchased the lock company Sargent and Greenleaf from Stanley Black & Decker. A court filing by the trustee overseeing the bankruptcy proceedings said Golden Guernsey owed $1.5 million because it had violated state labor laws that require 60 days notice to employees of mass layoffs. The lawsuit was dismissed in April 2016. Terms of the investment were not disclosed. OpenGate nevertheless was lured back in as a short-term lender to Darden. Once the OpenGate deal blew up, Darden Jr. and Newkirk turned to Mark Weinberg, at Versant Funding and MDW Funding, who agreed to a short-term loan of $5.5 million. The closure of PennySaver only reaffirmed the Connecticut state senators opinion of OpenGate. "Meet The Private Equity CEO Who's In Talks For His Own Reality Show," Julia La Roche, Business Insider, 8-16-2011. June 18, 10:39 a.m.: An earlier version of this article and an accompanying photo caption reported that PennySaver workers were suing OpenGate Capital and its managing partner, Andrew Nikou. Opengate Capital Grp. LLC v. Thermo Fisher Scientific Inc. He has a passion for people and a knack for recognizing what is needed to help businesses in . OpenGate Capital Acquires Diversified Commodity and Specialty Chemical OpenGate said PennySaver had to be closed because Capital One unexpectedly pulled its line of credit at the last minute. The firm faced six different lawsuits after abruptly laying off Pennysaver employees in the middle of a work day without giving workers their final paychecks for several days or compensation for unused vacation days. We work with every customer to find a workable solution, but unfortunately we werent able to reach an agreement in this situation.. The sudden closure and lost pay did not surprise former employees of other companies once owned by OpenGate Capital the Los Angeles-based private equity firm that bought PennySaver in 2013. A link has been emailed to you - check your inbox. Our Standards: The Thomson Reuters Trust Principles. Thermo Fisher, the world's largest maker of laboratory equipment and scientific instruments, agreed to acquire Life Technologies Inc LIFE.O in mid-April for more than $13 billion. OpenGate Capital Fully Exits Investment in EverZinc Nikou, its founder, is a board member at the Hammer Museum and, until recently, at the Museum of Contemporary Art. The owner, private equity firm OpenGate Capital in Century City, had turned over management of the firm in December to a restructuring and liquidation company, Realization Services Inc. in Bedford . Further explore our recent investment activities and quarterly reports, 2023 OpenGate Capital Management, LLC. [7] Nikou studied finance at the University of Southern California Marshall School of Business. OpenGate, which acquired PennySaver in 2013, specializes in buying units of larger companies and reselling them. Likewise, OpenGate itself has continued to raise millions since bankrupting its previous companies, enabling these practices to continue unabated. More than two years after the dairy closed, with bankruptcy proceedings still unfolding, the Storm family hasnt seen the $23,000 they estimate they are owed for the lack of notice and unpaid vacation days. It would. The Motion was joined by defendants Andrew Nikou and Jay Yook.4 The It is normal course and practice that all parties to a contemplated transaction withhold announcements to any outside parties until there is certainty there will be closure, Fahn said. Capital One spokesman Michael Bulger said: Withdrawing funding is a last resort. Its a story about predatory private equity run amok. OpenGate Capital Group, LLC, OpenGate Capital Management, LLC and PennySaver Investors, LLC's (collectively, "OpenGate"), which seeks to dismiss the Complaint3 filed by Don A. Beskrone, Chapter 7 Trustee for the estates of PennySaver USA Publishing, LLC, et al. "Nicole Farhi Buyer OpenGate Set to Announce Three More Deals," David Altaner, Bloomberg, 3-15-2010. On May 27, 2021, 166 workers in Janesville, Wisconsin awoke to a nightmare. of the Connecticut boxboard company Fusion Paperboard, and nearly. OpenGate Capital is a global private equity firm specializing in the acquisition and operation of businesses to create new value through operational improvements, innovation and growth. OpenGate Capital Group LLC et al v. Thermo Fisher Scientific Inc Do Not Sell or Share My Personal Information, Musk said hed never settle an unjust legal case against him. OpenGate Capital Group LLC et al v. Thermo Fisher Scientific Inc et al [1] The firm is focused on the acquisition of lower to middle market businesses that are often privately owned, or non-core divisions of larger companies located around the world. The employees say they didn't get money owed to them including their paychecks and vacation time. They just dont flat out care about being a reputable business, from my perspective, Osten said. PennySaver workers are suing OpenGate in state and federal court, alleging that the company failed to provide adequate notice about the shutdown. Previously, Andrew was the Board Membe r at Yellow and also held positions at SPACInsider, Platinum Equity. We need to take legislative action in Congress to rip up the predatory playbook that these private equity firms use to leave workers with nothing but pink slips and lost livelihoods, Senator Tammy Baldwin of Wisconsin, , the first major effort to reform the private equity sector, in the last Congress. Baldwin was a co-sponsor of the Stop Wall Street Looting Act, the first major effort to reform the private equity sector, in the last Congress. OpenGate Capital is part of the Finance industry, and located in California, United States. We look to establish collaborative relationships with companies to drive operational improvement and realize opportunities for long-term value creation. The allegations are often complex, and the plaintiffs must prove that the defendant violated securities . Paris Area, France. OpenGate gets sued for alleged WARN Act violations | PE Hub 7-14-2011) . I worked the for a little over 4. Thermo Fisher was not immediately available for comment outside of normal U.S. business hours. Andrew Nikou Founder, Chief Executive Officer OpenGate Capital 10250 Constellation Boulevard, 30th Floor OpenGate Capital is a global private equity firm specializing in the acquisition and operation of businesses to create new value through operational improvements, innovation, and growth . 1 at 17.) Vice President. A court-appointed trustee also sued OpenGate for siphoning money from Pennysaver through a variety of shady tactics. In 2005, entrepreneur Andrew Nikou used $30,000 from his own savings to form a private equity firm, OpenGate Capital. But in some cases, as with PennySaver, external circumstances frustrate our ability to have our investments realize their full potential.. ScioTeq, a market leader and established name in visualization solutions for the Air Traffic Control, Avionics and Defense markets, is entering a new era as a standalone company as the result of the acquisition by Private Equity firm OpenGate Capital as of 01 July 2021. OTHER FILED BY OPENGATE CAPITAL LLC ON 07/15/2015 [+] Read More [-] Read Less; 07/16/2015. OpenGate Capital. [1] The firm is focused on the acquisition of lower to middle market businesses that are often privately owned, or non-core divisions of larger companies located around the world. Nikou instead tries to generate goodwill as a philanthropist and has even started his own foundation, which boasts of a mission driven by values empowering individuals and communities. Nikou still sits on numerous boards, including that of the Hammer Museum in Los Angeles. Chief Operating Officer & Managing Director, Head of Investor Relations & Communications, Operations Expert, Manufacturing & Supply Chain, Senior Advisor, European M&A - Technology, Founder, Executive Chairman, XPRIZE Foundation, Technology Expert, Industrials, Environmental, & Manufacturing 4.0, 2023 OpenGate Capital Management, LLC. OpenGate's professionals possess the . I find it to be despicable.. One of those businesses, like PennySaver, filed for bankruptcy. An uncommon approach to investing in and growing complex businesses. Kasoff said that his sole focus after his company was brought in was on fixing PennySaver and that a shutdown was never contemplated until Capital One shut off credit without explanation. LOS ANGELES, August 23, 2022 -- ( BUSINESS WIRE )-- OpenGate Capital, a global private equity firm, announced today it . In October 2012, OpenGate Capital bought the laboratory workstations business of Thermo Fisher Scientific, a maker of laboratory furniture. The suit claimed that Thermo Fisher had rushed negotiations and provided misleading answers to due-diligence inquiries. Our commitment to a sustainable future draws back to our efforts since inception andis continuously evolving. [5] At Platinum Equity, he expanded the firm's international presence in Europe. Rapacious LA Vulture Capitalist Firm: Ruins Job, Communities for Profit The owner, private equity firm OpenGate Capital in Century City, had turned over management of the firm in December to a restructuring and liquidation company, Realization Services Inc. in Bedford Hills, N.Y. And in the two months before the shutdown, the lender, a unit of Capital One Financial Corp., had placed one and sometimes two representatives at PennySavers Brea headquarters to monitor the operation and the companys financial condition, under terms of the line of credit it was using to pay employees, among other expenses. The companys shares closed at $84.46 on Friday on the Nasdaq. OpenGate Capital Group LLC et al v. . In early 2014, Fusion signed a six-year contract with the union representing its employees. It bought Gabriel Ride Control, a shock absorber maker losing $20 million a year, returned it to profitability and preserved 1,400 jobs before selling it in 2012. Last year, an OpenGate portfolio company called Fusion Paperboard in Sprague, Conn., shut down, eliminating 145 jobs and defaulting on the $1.8-million balance of a state-subsidized loan, according to the state Department of Economic and Community Development. Why would we put in all that effort?. . In January 2013, for instance, OpenGate abruptly shut down Golden Guernsey Dairy in Waukesha, Wis. (Reuters) - Opengate Capital Group LLC filed a lawsuit on Friday alleging that laboratory equipment maker Thermo Fisher Scientific Inc TMO.N sold it a Mexican plant last year without revealing that a drug cartel was operating there. (Reuters) - Opengate Capital Group LLC filed a lawsuit on Friday alleging that laboratory equipment maker Thermo Fisher Scientific Inc. sold it a Mexican plant last year without revealing that a drug cartel was operating there. After laying off all 166 workers at Hufcor's Janesville plant, OpenGate Capital drove the company . OpenGate Capital partners with companies to . OpenGate Capital, the private equity firm that owns their employer, Hufcor, announced it was moving their plant out of Janesville taking those workers jobs and livelihoods with it. Heres what the numbers show. The younger Darden pleaded guilty to his own Maxim-related fraud charges in November and is cooperating with prosecutors in their pursuit of Newkirk. 19, Ex. But OpenGate never got a dime after it lent the cash as the alleged fraud was uncovered. Uber drivers and other app-based workers are facing an all-out safety crisis. Other emerging managers in . In too many cases with private equity, big firms acquire businesses and squeeze them for cash, routinely causing bankruptcies. Shortly after the presentation, senior PennySaver staff members were asked to write to OpenGate partner Jay Yook, outlining how they would turn around the company, said Elaine Buckley, who at the time was PennySavers vice president of outside sales. 14 at 5-6.) . This spring, 166 workers in Janesville, Wisconsin awoke to a nightmare. "OpenGate Capital Acquires Philips Business Communications in Brazil," Latin America Venture Capital, 3-18-2010. [33] In 2014, Nikou announced that he was forming a partnership with businessman Ricardo Salinas to bring Esperanza Azteca Youth Orchestra to Los Angeles through a partnership with the city's mayor, Eric Garcetti. No tags have been applied so far. That explanation ignores the blatant injustice done to Hufcor workers, whose woes reflect the influence of predatory private equity, and tells a story of Wall Street run amok. I just dont find it funny to ruin peoples lives. Founded in 2005, OpenGate Capital is a global private equity firm that strives to acquire and optimize lower middle market businesses throughout North America and Europe with a strategic focus on operational improvement, innovation and growth. The default, the hiring of the restructuring firm and the lenders presence on site paint a picture of a company in financial distress, the kind that former employees allege should have prompted OpenGate to provide a federally required 60 days notice before closing the plant. Only logged in subscribers of this site will be able to access the shared article. One of the lenders was Andrew Nikous OpenGate Capital, the company that recently sold its TVGM Holdings (owner of TV Guide magazine). Working at OpenGate Capital | Glassdoor Reporting by Pallavi Ail in Bangalore, Karl Plume in Chicago; editing by Gunna Dickson. OpenGate Capital has a history of buying companies, only to close operations shortly thereafter, leaving communities across the country in the lurch. At age 25, he moved to Paris to help open the firm's first European office. OpenGate Capital, a Los Angeles firm that amassed $5 billion in revenue during its first decade in business, has run exactly that playbook in Janesville since acquiring Hufcor in 2017. What the fk is going on? Weinberg wrote in an email to Newkirk on Nov. 12 after learning his cash was gone, according to trial testimony. Hufcor, a market-leading producer of accordion-style doors and mobile room partitions, was profitable when OpenGate bought it. If we wanted to liquidate the company it would be done by now. employees in the middle of a work day and failing to give workers their final paychecks. OpenGate failed to give workers at Pennysaver and Golden Guernsey the 60 days notice of business closure that is required under U.S. labor law. Contact the writer: 714-796-2286 or [email protected]. Thermo Fisher sued over sale of Mexico plant used by drug cartel Our tax dollars should make life better not go to waste on bloated military contracts and Pentagon boondoggles. LOS ANGELES, June 01, 2022 -- ( BUSINESS WIRE )-- OpenGate Capital, a global private equity firm, announced that it has exited its investment in EverZinc, a global provider of specialty zinc . Private equity, an ownership structure that puts distant financiers in charge of how a business is run, has been shown to result in worse health outcomes for patients, at greater cost. Investment Represents Strategy to Create European Aluminium Solutions Group. Newkirk was fully involved in the scam, prosecutors allege. All rights reserved. It agreed to provide $3.1 million in . Grace Matthews advised Chemsolv on the transaction. The first named plaintiff, OpenGate Capital Group LLC, and four of its subsidiaries named as plaintiffs are creatures of Delaware law as well. This spring, Hamilton Scientific, a De Pere, Wis., lab equipment maker owned by OpenGate, abruptly shut down, laying off 80 people there and 190 at plants in Texas and Arkansas without notice, according to a lawsuit filed by former employees. OpenGate Capital is planning the launch of its third flagship fund over the next 6-12 months, with a target of up to $700m, according to a source close to the situation., Funds, Buyout, France, UK / Ireland, Benelux, Southern Europe, DACH, Nordics, CEE, OpenGate Capital, Exclusive How Palm Springs ran out Black and Latino families to build a fantasy for rich, white people, 17 SoCal hiking trails that are blooming with wildflowers (but probably not for long! Opengate said gang members brandished weapons to intimidate employees at the facility and parked their cars and tractor-trailers filled with unknown cargo there. [27], On January 5, 2013, Golden Guernsey ceased operations without notice in an alleged violation of the State of Wisconsin's mass layoff/shutdown regulations. [26], Prior to raising its first institutional fund, OpenGate also acquired the Waukesha, Wisconsin plant and brand rights to Golden Guernsey Dairy as the result of an antitrust divestment of Dean Foods, which was required to sell the plant to purchase GGD's other plants in the state. You get out of default.. At OpenGate, we strive for a culture that promotes open communication and empowerment of fellow team members..

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