Grantham Capital Ltd, which bought Europe’s largest independent retreader Vaculug Limited in 2018, filed a fraud action against Vaculug’ s former owners on 16 January 2020.
According to Law360, Grantham Capital specifically alleged that Vaculug “artificially inflated its 2017 reported profits and misrepresent[ed] how much extra money the company had.”
The suit accused former directors including John Langham, Alison Collins, Tim Hercock and John Parsons of conspiring to inflate the value of the company prior to its July 2018 sale.
According to court documents and related news coverage reports Grantham Capital has won the lawsuit it filed against the former owners of Vaculug.
Grantham has effectively received $2.5 million from the former owners as part of its ‘settlement’ of the issue with John Langham, Alison Collins, Tim Hercock and John Parsons and the other owners.
According to one source close to the advisers involved, the former owners settled once they realised that they could go to prison for fraud and manipulation which is a criminal offence in the UK.
No comment has been received from Grantham Capital or the former owners of Vaculug. Calls to date have not been returned.