Gordon Sues Investment Banker Over Failed Gillett Nascar Deal 02/10/2008
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Nascar driver and team owner Robby Gordon is suing McLaren Capital Advisers Inc. over a $1 million fee the Los Angeles-based investment company is seeking for a failed merger with Gillett Evernham Motorsports.
Gordon wants the court to throw out the fee McLaren sought for the deal, which ended with the settlement of a lawsuit last month, according to the complaint filed yesterday in state court in Los Angeles. Gordon said in the complaint that the deal was ``fraudulently induced'' and failed to close because of misrepresentations made by McLaren.
Gordon claims the fee to McLaren was contingent on a successful merger. He asked for a judge to determine the parties' rights, duties and obligations in connection with the fee dispute. The court filings include a Sept. 2 bill from McLaren for $1,013,656, listing a ``total consideration'' of $40 million, and a success fee of 2.5 percent equaling $1 million, plus $13,656 in expenses.
Gillett Evernham, owned by Montreal Canadiens owner George Gillett, sued Gordon in a North Carolina court claiming he reneged on a $23.5 million takeover agreement. The two companies settled that case, and Gordon ended a technical alliance with Gillett's Statesville, North Carolina-based race team.
Steven Nichols, the Los Angeles lawyer representing Gordon, didn't immediately return a call seeking comment. A call to the cell phone of McLaren Capital principal Matthew Doherty, who is also named in the suit, wasn't returned.
Gordon has been using engines supplied by Roger Penske's Nascar team since the Gillett Evernham agreement was dissolved. He is 32nd in the Sprint Cup Series standings.
In addition to Gordon, the plaintiffs include Team Gordon Inc., Robby Gordon Enterprises Inc., Speed Racer Inc., Entrepreneur Investments Inc., RGW II Investments Inc. and Gordon Air LLC.
The case is Robert W. Gordon v. McLaren Capital Advisors Inc., BC399176, Los Angeles Superior Court.
(Source: Bloomberg)
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