A Florida court has temporarily blocked Cap10 Partners LLP’s attempt to takeover a UK addiction treatment company after Cap10 was sued for fraud and conspiracy.
Cap10 and its partners faces a permanent injunction and up to $132,000,000 in damages in the case.
According to the complaint, Cap10 has “sought to unlawfully obtain ownership of UKAT by thwarting UKAT’s efforts to refinance its debt with a third-party, with the aim of ultimately purchasing UKAT’s assets at a substantial discount below their actual value.”
The complaint further alleges that Cap10 has “engaged in overt acts in furtherance of their agreement to defraud Plaintiff by disseminating information of UKAT gained during prior negotiations to third-parties, both individuals and entities, in effort to thwart UKAT’s debt refinancing efforts and lower the market value of UKAT and/or its assets.”
Responding to these allegations, a Florida Court has temporarily barred Cap10 from any purchase of UKAT’s stock or assets.
“We are grateful for the Court stepping in here to protect the interests of the UKAT Trust which is the majority owner of the UKAT assets,” says Robert “Bo” Gaddy, the beneficiary of the UKAT Trust. “This fraud by Cap10 has been underway for over a year and it’s high time that these bad actors be brought to justice,” says Gaddy.
“We fully intend to file further litigation against anyone who participates with Cap10 in perpetuating this fraud and conspiracy including filing claims against Cap10’s partners and investors,” says Gaddy.
