19 November 2009 ? Sussex & Reilly’s former owners, Glenn Tomlinson, Elizabeth Scheffler, and Donald Battaglia have filed a lawsuit against Ravenswood Bank. The bank engineered the sale of the brokerage to competitor Sudler Sotheby’s in February. The suit alleges that the bank improperly declared S&R’s loans in default in order to force the sale and reduce its risk based on the assumption that a Sussex/Sotheby’s union would fare better in today’s marketplace. Ravenswood Bank also filed suit last month against Sean Conlon, S&R’s original owner, stating that he had made personal guarantees on the outstanding debt. Conlon has filed a counterclaim stating that he was released of any personal liability when he sold the company in 2006. Outside sources agree that S&R was carrying an unsustainable amount of debt, and that Ravenswood Bank had few attractive options to recover its investment. While Sudler Sotheby‘s remains a marketing powerhouse through its national and international networks, the S&R acquisition has generated multiple lawsuits among internal management.Email This Post To a Friend.
Ravenswood Bank Sued Over Sussex & Reilly Acquisition
November 19, 2009
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