Scientologist David Gentile’s GPB Capital has paid former executive David Rosenberg $30 million to settle a long and bitter lawsuit between the parties.
Rosenberg’s relationship with GPB Capital began in 2017 when he sold Gentile’s then fast-growing firm a majority ownership position in his Prime Motors for $235 million. The purchase was made by GPB Capital’s Capstone Automotive Group. The acquisition allowed GPB Capital’s Automotive Fund to become the tenth largest owner of car dealerships in the US.
After the acquisition, David Rosenberg remained onboard as the CEO of GPB’s new Prime Automotive Group. Troubles quickly began, however, as Rosenberg objected to what he considered dubious, and possibly illegal, financial dealings within GPB Capital. Rosenberg reported his concerns to the SEC. David Gentile appears to have retaliated by refusing to pay Rosenberg $5.9 million when the latter chose to exercise his option to sell his remaining shares in Prime.
David Gentile fired David Rosenberg in 2019. Rosenberg sued. GPB Capital thereafter waged an expensive, irrational, and ultimately futile legal war only to settle the case with Rosenberg for $30 million. Beyond the money, the settlement is a moral vindication for David Rosenberg who did the right thing by reporting David Gentile and his sleazy associates to the SEC and calling public attention to what was going on inside of GPB Capital Holdings.
The settlement with David Rosenberg clears the way for Group 1 to move forward with its $880 million purchase of GPB Capital’s Prime Automotive Group.
Arrested by the FBI in February 2021, David Gentile and his co-defendants Jeffry Schneider and Jeff Lash are preparing for their criminal trials in US Federal Court. GPB Capital continues to be managed by court-appointed monitor Joe Gardemal.
Categories: The Scientology Money Project