Ousted Prime Automotive Group CEO David Rosenberg has settled a long and contentious lawsuit against his former employer, clearing the way for an $880 million sale of its 27 auto dealerships in the Northeast, including six in Maine.
Houston-based Group 1 Automotive closed on its purchase of the dealerships on Wednesday, the same day Prime Automotive signed a settlement agreement with Rosenberg for $30 million, according to media reports and a Group 1 Automotive news release.
Rosenberg’s father, the late Ira Rosenberg, founded the Prime Motor Group dealership chain in Maine, which later became part of Prime Automotive in 2017. David Rosenberg was named chief executive of the expanded company, which is based in Massachusetts.
But Rosenberg soon complained about financial misdeeds he said he uncovered and exercised an option that allowed him to sell the remainder of his shares to the company. Prime Automotive then fired Rosenberg, and when it failed to fully compensate him for his shares, he filed suit in Massachusetts.
Prime Automotive has been swirling in controversy for years, capped in February when executives associated with its parent company, New York-based investment firm GPB Capital Holdings, were arrested and charged with fraud. David Gentile, the founder, owner and chief executive of GPB Capital Holdings; Jeffry Schneider, the owner and CEO of Ascendant Capital; and Jeffrey Lash, a former managing partner of GPB Capital, all were arrested and…