Founded in 1995, Wellspring invests anywhere . But Wellspring would arguably undermine the ability to negotiate for what are customary and, indeed, necessary protections for corporate decisionmakers in those same transactions, such as releases, indemnity, or exculpation. 89], Charles E. Walker, Jr. [Docket No. Bill Dawson is taking time off from his $2.2 billion private equity firm Wellspring Capital Management, which will investigate the claims of Dawson's threats, according to an internal memo. The court considered whether inaccurate credit ratings can form the basis for a negligent misrepresentation claim. An actual fraudulent conveyance is any "conveyance made . Revenue: $500 million to $1 billion (USD) Competitors: Unknown. In Wellsprings view, the extent to which releases might have benefitted SportCo (as opposed to benefiting the directors alone) was at least in part a question of fact that could not be resolved on a motion to dismiss. Wellspring Capital Management, founded in 1995, is a leading middle-market private equity firm that manages more than $3 billion of private equity capital. Crazy 8 was started in August 2007. On March 7, 2013, the Borrowers entered into a First Amendment to the Loan Agreements (the "First Amendment"), pursuant to which Prospect loaned the Borrowers an additional $60 million. The legal team representing former President Donald Trump formally has requested a six-month delay in the civil case filed against him by New York Attorney General Letitia James. The firm, which is based in New York City, was founded in 1995 by Martin Davis and Greg Feldman. & Loan Ass'n of New York City, the plaintiff loaned funds to the defendant, secured by a mortgage on a parking garage. Financial terms of the transaction were not disclosed. Jan. 30, 2023). 2018) (distinguishing cases where the courts dismissed negligent misrepresentation claims based on "puffery" or founded solely on speculative statements regarding future profits as a result of proposed transactions, and finding that the misrepresentations at issue were actionable because they involved present facts). (quoting Edwards v. City of Goldsboro, 178 F.3d 231, 244 (4th Cir. It is notable that the first and second causes of action are based only on South Carolina law; however, because the parties disagree as to whether South Carolina or New York law should apply, the Court will analyze the first and second causes of action under both. (Bloomberg) -- Wellspring Capital Management LLC Chief Executive Officer Bill Dawson has taken a leave of absence, days after a former employee alleged in a lawsuit that he threatened her for accusing his son of sexual assault."We are taking this matter very seriously, and have launched an immediate internal investigation," Jeffrey Gould, Wellspring's head of marketing and investor . Particularly where negotiations may involve releases, indemnification, or similar provisions, be advised that the ever-present tendency for counterparties to exercise 20/20 hindsight is fully in effect. Otherwise you cannot get paid." Make your practice more effective and efficient with Casetexts legal research suite. v. Trimble Navigation Ltd., 484 F.3d 700, 705 (4th Cir. The plaintiff does not dispute that the amended complaint does not plead actual fraud, and it clearly does not. UNITED STATES BANKRUPTCY COURT DISTRICT OF SOUTH CAROLINA. SportCos negotiations were led by a SportCo director, who was also the managing partner of Wellspring Capital, SportCos equity sponsor. Certain state securities regulatory authorities have similar exemptions based on . A social media content creator signed an agreement with Birchbox in May of 2022 and hadn't been paid the $2,500 due as of Jan. 24, despite several emails to the company. A former employee of Wellspring Capital Management filed a lawsuit in a New York Thursday alleging that the CEO's son, Christopher Dawson, drugged and repeatedly raped her one night in the. Wellsprings investment professionals possess diverse and complementary backgrounds that combine valuable experience in private equity, restructuring, corporate finance, capital markets and corporate law. 20-50554, 2021 WL 4823513 (Bankr. This approach has historically delivered returns well above inflation Our clients 987, 999-1000 (Bankr. California Weighs $360,000 in Reparations to Eligible Black Residents. W.D. The defendants filed separate motions. The issue in Merritt Dredging was the sale of a barge and the priority of parties' interests in the proceeds of the sale. R. Civ. SportCo later filed a free fall bankruptcy and liquidatedallegedly causing substantial losses for unsecured creditors that would not have occurred had SportCo accepted that agreement in principle allegedly reached in December 2018. Munich, by far the largest city in southern Germany, lies about 30 miles (50 km) north of the edge of the Alps and along the Isar River, which flows through the middle . Va. June 8, 2011) (acknowledging that Maryland law is not clear regarding whether a fraudulent conveyance action sounds in tort, but concluding that "given that the gravamen of the fraudulent conveyance claim is the wrongfulness of the conveyance and the injury to the creditor, rather than balancing equities or fairness, it is appropriate to conclude that fraudulent conveyance claims sound in tort. The Court also notes that, setting the other factors aside, given the extreme nature of the urgent tone of these emails, and the highly sophisticated status of Prospect, Prospect satisfying the justifiable reliance element of a negligent misrepresentation claim is questionable, at best. We look forward to carrying forward that vision and continuing our success in the years ahead.". Federal Rule of Bankruptcy Procedure 7012(b). The amended complaint contains no allegations that either Ellett, with respect to the first cause of action, or SportCo, with respect to the second cause of action, was insolvent at the time of the distributions or became, at the time of the transfers, insolvent as a result of the transfers. [Amended Complaint, 37, 40]. Follow along as he lays out the blueprint for his career, and takes us all the way from his first sketch to his thriving personal brand, Spunge. 2d 317 (S.D.N.Y. The court stated: See Credit Alliance Corp. v. Arthur Anderson & Co., 65 N.Y.2d 536 (NY App. Ashmore for Wilson v. Dodds, 262 F. Supp. Law360 takes your privacy seriously. The plaintiff responds that the statements relate to presently existing facts and that opinions are actionable in a negligence context. 19-80071-DD (Bankr. The amended complaint further states that from October 2012 to October 2013, "Ellett achieved record sales and earned revenues of approximately $1.2 billion." 1988) (adopting rule from Klaxon Co. v. Stentor Electric Manufacturing Co., 313 U.S. 487 (1941) stating that a federal court sitting in diversity should apply the choice of law rules of the state in which it sits). Investment Approach Target Investments Wellspring's objective is to acquire or invest in companies that are well-positioned to capitalize on change and can benefit from Wellspring's operating and financial expertise. New York law and South Carolina law differed as to whether such a transfer was permitted. David R. Duncan US Bankruptcy Judge District of South Carolina. Ronald J. Friedman, as the trustee for the SportCo Creditors' Liquidation Trust, Plaintiff, v. Wellspring Capital Management, LLC, Wellspring Capital Partners IV, L.P., WCM Genpar IV, L.P., WCM Genpar IV GP, LLC, Alexander E. Carles, Bradley Johnson, F. Hewitt Grant, Charles E. Walker, Jr., Todd Boehly, Bernard Ziomek, and Andrew Kupchik, Defendants. We look forward to hearing from you. SEC / JURISDICTION. [Amended Complaint, 51]. Wellspring has one of the best track records in middle-market private equity; its people, capital and reputation bring certainty to transactions. Later emails berate Prospect's representative for failing to agree to the AcuSport purchase more quickly. Since its founding in 1995, Wellspring has raised over $4.5 billion of initial capital commitments through six private equity funds. PLEASE SEE THIS LINK FOR FULL DISCLAIMER: This site is for informational purposes only. The firm's objective is to bring partnership, experience and value creation to each investment. Private equity firm Wellspring Capital Management LLC on Friday hit a slew of its insurers with a suit in New York state court alleging they must defend it against claims that it plundered . 6. . Todd Boehly filed a joinder to the Wellspring Defendants' motion to dismiss. Practices: View Videos. Id. @S1 $82N+ZJ | Total number of employee profiles an organization has on Crunchbase, Total number of Crunchbase contacts associated with this organization, Descriptive keyword for an Organization (e.g. CDI's smaller Atlanta peer said to weigh sale in '18. Martin Davis, 72; Created Modern Paramount, "Financial Firm Wellspring Capital to Take Penthouse at 605 Third Avenue", "Wellspring Capital Management taps $1.45bn Fund VI for Cadence Petroleum Group buyout", "SupplyOne Acquires Fellow Packaging Distributor Romanow Container", "Healthcare & Life Sciences Private Equity Deal Tracker: Wellspring Acquires Pentec Health", https://en.wikipedia.org/w/index.php?title=Wellspring_Capital_Management&oldid=1118006247, This page was last edited on 24 October 2022, at 18:15. at 358. hXO8WtVH,~W"I/ {;N7'0HAA0%`Ih5L!p! The plaintiff relies on the fact that Ellett was unable to pay the debt owed to Prospect at the time that it had to be paid in full; however, this is not the only relevant point in time. Id. At all times relevant to these claims, Wellspring Capital controlled (a) Wellspring Capital Partners Wellspring Capital Management is an American private equity firm focused on leveraged buyout investments in middle-market companies across a range of industries. The courts analysis of the duty of loyalty claim can be fairly characterized as limited, consisting of four short paragraphs that largely restate or simply quote the complaint. It identifies undervalued companies whose share price does not properly reflect the true value of the business. For purposes of South Carolina law, the parties disagree whether Prospect was a preexisting creditor or a subsequent creditor. Already a subscriber? Wellspring Capital Management, founded in 1995, is a middle-market private equity firm that has approximately $2 billion of private equity capital under management. 2009). The elements of a negligent misrepresentation claim under South Carolina law are as follows: Turning now to the present case, the third cause of action must be dismissed under either New York or South Carolina law because the statements that the plaintiff asserts constituted negligent misrepresentations were all statements regarding potential outcomes of a potential business endeavor; thus, they relate to future events and cannot form the basis of a negligent misrepresentation claim. pursue new growth opportunities through strategic initiatives, operating improvements and add-on acquisitions. I Shall [Not] Be Released: Wellspring, Director Releases, breached their duty of care, since the directors refused to reasonably maximize corporate value by killing the restructuring on account of releases/indemnity (, breached their duty of loyalty, since they placed their own self-interests above those of their fiduciaries [. 22-2003, 2023 WL 1098189 (3d Cir. The defendants asserted common arguments in support of dismissal, but all arguments made in support of dismissal were not asserted by each defendant. The portfolio manager is also a co-investor in the strategy. In 2012, the year that the amended complaint alleges Ellett "achieved record sales and earned revenues of approximately $1.2 billion," Ellett and its operating subsidiaries (the "Borrowers") entered into a Third Amended and Restated Loan and Security Agreement and a Second Lien Loan and Security Agreement (collectively, the "Loan Agreements") with lenders including Prospect Capital Corporation ("Prospect"), pursuant to which Prospect and the other lenders loaned $280 million to the Borrowers. The Loan Agreements and the First and Second Amendments each contain a choice of law provision, providing that New York law applies. For example, the October 27, 2017 email stated, "The only way to optimize is to merge with Acusport." Sec'y of State for Def. The court must construe the allegations in the complaint in the light most favorable to the plaintiff. The adviser's REGISTRATION status is listed below. Please see our Privacy Policy. Andrew Kupchik argued dismissal was necessary due to Prospect's ratification and/or consent to the distributions, due to failure to state a claim under New York law because of lack of insolvency and failure to state a claim under South Carolina law due to failure to plead actual fraud, due to the expiration of the statute of limitations on the fraudulent conveyance claims, and due to failure to plead the existence of a triggering unsecured creditor. Most of them do not even contain any concrete information about the proposed AcuSport purchase or the likelihood of the Borrowers' default. Finally, although the plaintiff asserts that federal conflict of law principles should apply, he argues that even under South Carolina conflict of law rules, South Carolina law should apply. Note: This site is for informational purposes only. Specifically, Mr. Carles and Mr. Johnson represented to Prospect that a purchase of AcuSport would result in: (1) Debtors' capturing 20 to 30 percent of AcuSport sales; (2) Acquisition of $14 million worth of AcuSport's inventory at a significant discount; and (3) Realization of an immediate $7 million profit from the sale of the inventory acquired in the purchase. The plaintiff's first and second causes of action both assert claims for fraudulent conveyances pursuant to 544(b) and S.C. Code 27-23-10. In considering what choice of law provisions to apply, the Fourth Circuit stated: The Court notes that there is a specific fraudulent conveyance section of the Bankruptcy Code. Id. On 05/20/2022 Wellspring Capital Management, LLC Wellspring Cap filed an Other lawsuit against Barry, III.This case was filed in U.S. Bankruptcy Courts, New York Southern Bankruptcy. Click here to login, 2023, Portfolio Media, Inc. | About | Contact Us | Legal Jobs | Advertise with Law360 | Careers at Law360 | Terms | Privacy Policy | Cookie Settings | Help | Site Map, Enter your details below and select your area(s) of interest to stay ahead of the curve and receive Law360's daily newsletters, Email (NOTE: Free email domains not supported). Nor is it necessary for the Court to decide whether New York or South Carolina law applies under South Carolina's choice of law principles. Wellspring is a cautionary tale for the fiduciaries of a distressed or potentially distressed corporationparticularly with respect to negotiations around release and/or indemnification provisions for those same fiduciaries. Va. Mar. Since its founding in 1995, Wellspring has raised over $4 billion of initial capital commitments through . to negotiate for release or indemnification, with the defendants arguing that such releases may have saved the post-restructuring company the expense of indemnifying the D&O Defendants in subsequent litigation. Copyright 2023 Ropes & Gray LLP. See Silvercreek Mgmt., Inc. v. Citigroup, Inc., 346 F. Supp. SaaS, Android, Cloud Computing, Medical Device), Where the organization is headquartered (e.g. 2008) (citing Southmark Corp. v. Crescent Heights VI, Inc. (In re Southmark Corp.), 95 F.3d 53, 53, n.7 (5th Cir. The firm functions as a strategic rather than tactical partner, providing management teams with top-line support, M&A experience and financial expertise, and access to resources. The origins of Wellspring Philanthropic Fund are shrouded. The defendants argue that as a subsequent creditor, Prospect is required to plead actual fraud, and the amended complaint fails to do so. The firm functions as a strategic rather than tactical partner, providing management teams with top-line support, M&A experience and financial expertise, and access to resources. Wellspring Capital Management LLC operates as a private equity firm. The plaintiff responds that Prospect is a preexisting creditor because the distributions were not made until after Prospect became a creditor when the Loan Agreements and the Amendments were signed. A finding that Prospect is a preexisting creditor compels the same result. Why is this public record being published online? Id. They were not statements of presently existing fact. By continuing to use this website, you agree to UniCourts General Disclaimer, Terms of Service, Fund VI brings the firm's assets under management to more than $4.4 billion. There are no allegations in the amended complaint that the debtors' liabilities exceeded their assets at the time of the transfers. This is despite the fact that 57% of Californians and 37% of California Democrats do not want President Joe Biden to run, according to a poll from the Berkeley Institute of Governmental Studies. To summarize New York law, then, it appears that opinions can be actionable, but are not always actionable. The amended complaint fails to allege insolvency at the time of the transfer, an essential element of a fraudulent conveyance claim under either New York or South Carolina law, and therefore fails to state a claim under 544(b). Munich, German Mnchen, city, capital of Bavaria Land (state), southern Germany. with actual intent . Tex. Similarly, Merritt Dredging suggests that federal law would apply to a section 548 cause of action, but that state law should apply to fraudulent conveyance claims based on state law. See Scheidelman v. Henderson (In re Henderson), 423 B.R. Find More Contacts for Wellspring Capital Management, Edit Lists Featuring This Company Section, European Regulation Ushers In Global Future For Fundraising, Wellspring Capital Management Acquires Caring Brands International, Private Equity Firms with Investments in United States, Greater New York Area Investors with Funds Raised in 2017, Private Equity Firms with Investments in Asia. As a result, the defendants argue, it would be unjust for Prospect to now be able to avoid the distributions. It is not unusual for an entity facing distress to engage with their stakeholders and to negotiate any number of transaction alternatives and terms. The firms objective is to bring partnership, experience and value creation to each investment. Oct. 14, 2021) (Stickles, J.) Importantly, however, the Wellspring court declined to dismiss the litigation trusts duty of loyalty claim, stating on a cursory basis that Drawing all inferences in favor of the Trustee, the Complaint contains sufficient allegations that the D&O Defendants breached their duty of loyalty regarding the Failed Out of Court Restructuring. Id. E-mail: sandra@wellspring-cap.com; Videos. Mr. Friedman was substituted as the plaintiff on January 10, 2020. The District Court discussed the South Carolina Supreme Court's decision in Sheldon v. Blauvelt, 29 S.C. 453 (1888). It is not intended as and should not be construed as financial, investment, tax, legal, regulatory, or other advice. Haynsworth Sinkler Boyd, P.A. The case status is Pending - Other Pending. The Debtors in the bankruptcy cases, pending in the District of Delaware, are SportCo Holdings, Inc.; Ellett Brothers, LLC; United Sporting Company, Inc.; Bonitz Brothers, Inc.; Evans Sports, Inc.; Jerry's Sports, Inc.; Outdoor Sports Headquarters, Inc.; Quality Boxes, Inc.; and Simmons Guns Specialties, Inc. If you want your business to survive, you need to understand your-self. Using a sophisticated network of for-profits, shell corporations, and consultancies, Wellspring has poured out an incredible $1.1 billion into nonprofits, most of which is hidden from prying eyes in donor-advised funds. The plaintiff/litigation trust also asserted claims directly against Wellspring Capital under an aiding and abetting theoryi.e., asserting that Wellspring Capital itself aided and abetted the SportCo Boards alleged fiduciary duty breaches. Wellspring, founded in 1995, has raised more than $4 billion of capital commitments through six private equity funds, according to its website. For the reasons set forth below, under the law of either state, the plaintiff's first and second causes of action must be dismissed. The defendants argue that in the event the Court finds the choice of law provision does not apply, South Carolina choice of law principles should be consulted to reach a finding that New York law applies. Another email stated, in part: "Gotta get your interest? Wellspring Capital Management LLC Chief Executive Officer Bill Dawson has taken a leave of absence, days after a former employee alleged in a lawsuit that he threatened her for accusing his son of sexual assault. Frustrated stakeholders can be further inclined, and incentivized, to view all corporate decisions with an eye towards litigation first through a 20/20 hindsight lens. My company, Asia Marketing and Management, has global ambitions but consists largely of me and the intelligence, experience, contacts, and per-sonality I bring to my clients . Div. Wellsprings objective is to bring partnership, experience and value creation to each investment. 8h`6$67Xn@,`& As discussed in Cyrus II, the Fourth Circuit has stated that a bankruptcy court should apply the choice of law rules of the state in which it sits. Investors in its most recent fund include the Washington State Retirement System, Minnesota State Board of Investment, Connecticut Retirement Plans & Trust Funds, Kansas Public Employees' Retirement at 321. The amended complaint does not allege that either Ellett or SportCo was insolvent at the time of the transfer or became insolvent as a result of the transfer. [Amended Complaint, 49]. Id. Salaries posted anonymously by Wellspring Capital Management employees. 2021 by wellspring capital Management. We are taking this matter very seriously, and have launched an immediate internal investigation, Jeffrey Gould, Wellsprings head of marketing and investor relations, told investors last week in a note seen by Bloomberg News. As with the plaintiffs assertions around disinterested governance, such allegations may (or may not) bear any semblance to the actual facts. Headquarters Location Lever House 390 Park Avenue New York, New York, 10022, United States The firm's objective is to bring partnership, experience and value creation to each investment. 19.)1. Will Others Follow? at 385. at 382. your most valuable capital, your ultimate resource. In early 2018, Wellspring Capital notified SportCo's secured lenders that SportCo would default on a $4.7 million interest payment due in the second quarter of 2018. Federal Rule of Bankruptcy Procedure 7012(b) provides that Federal Rule of Civil Procedure 12(b) applies in adversary proceedings. The third cause of action asserts that those parties "made numerous representations to Prospect concerning the AcuSport Purchase, including that the purchase would allow the Debtors to acquire $14 million worth of AcuSport inventory at a substantial discount; that it would result in the Debtors' immediate realization of a $7 million profit on the sale of the AcuSport inventory so purchased; and that it would result in the Debtors' capturing 20% to 30% of AcuSport sales." Wellspring Capital and the D&O Defendants grossly and recklessly mismanaged the business and carried out their respective roles in a manner that was devoid of reasonable inquiry and diligence in dereliction of their fiduciary duties to Prospect as a creditor of the increasingly insolvent enterprise. While property interests are defined by state law in the absence of a compelling federal interest, the Court would look to the Bankruptcy Code in making a determination of whether property is property of the estate under section 541. hb```e``jb`a`\ @1V h`2q:lp10qfaqB,X3s10iH(^t1 Probitas Partners acted as exclusive placement agent and Paul, Weiss, Rifkind, Wharton & Garrison LLP as legal counsel with respect to formation of Fund VI. The defendants argue that Prospect is a subsequent creditor, because it had knowledge of and approved of the distributions prior to them being completed. An outside law firm will assist with the probe to determine the validity of these reports, which allege behavior that is not only shocking but completely inconsistent with our corporate values and standards., Family calls complaint pure fiction intended as a shakedown, Dawson steps away from firm to spend time with his family. Jan. 25, 2016) (alteration original). Mar 19, 2019 New York private equity firm Wellspring Capital Management said Monday it has acquired Center for Diagnostic Imaging, a Minneapolis-based operator of MRI and CT scanners that. It is Bavaria's largest city and the third largest city in Germany (after Berlin and Hamburg). Further, if the statement is solely a speculative prediction about some potential business venture or course of action being contemplated, it is not actionable. (Compl. If you do not agree with these terms, then do not use our website and/or services. In April 2018, Prospect agreed to defer two quarters of cash interest payments. . Phone: 650 729-8626. 1984) for the proposition that under New York law, opinions are actionable in a negligence context. . The defendants' motions to dismiss are granted. The South Carolina Supreme Court stated that New York law would govern the validity of the transfer before it, unless applying New York law would result in a violation of South Carolina public policy. See Sheehan v. Saoud, 650 Fed. In 2010, Bain Capital acquired the company for US$1.8 billion. Flipbooks. Fax: 877 376-7003. Our returning and new limited partners share our belief in the unique value proposition that Wellspring brings to the investment process, with our focus on strategic partnership and tailored approach to each investment. The choice of law provision in the Loan Agreements states: In October 2017, Wellspring Capital was contemplating a purchase of AcuSport, a competitor, by Ellett, for $14.8 million. An action with multiple causes of action was commenced by Prospect Capital Corporation in South Carolina state court and was removed to this court on September 6, 2019. Designed By BM Designs. S.D. endstream endobj startxref It identifies undervalued companies whose share price does not properly reflect the true value of the business. Wellspring Capital Management LLC Chief Executive Officer Bill Dawson has taken a leave of absence, days after a former employee alleged in a lawsuit that he threatened her for accusing his son of sexual assault. At the conclusion of the hearing, the Court took the motions under advisement. Contact:KekstMark Semer or Peter Hill212.521.4800, Cision Distribution 888-776-0942 2010); Saifullah v. Johnson, 948 F.2d 1282, at *1 (4th Cir. In June 2017, Gymboree announced it was filing for Chapter 11 bankruptcy protection. Since its founding in 1995, Wellspring has raised over $4.0 billion of initial capital commitments through six private equity funds. This matter is before the Court on motions to dismiss filed by the defendants Wellspring Capital Management, LLC ("Wellspring Capital"), Wellspring Capital Partners IV, L.P. ("Wellspring Capital Partners"), WCM Genpar IV, L.P., WCM Genpar IV GP, LLC (collectively, the "Wellspring Defendants") [Docket No. These tools have been used since the firm's inception in 1995 to generate consistent business improvement in its portfolios. From October 2017 to April 2018, Mr. Carles and Mr. Johnson sent numerous emails to representatives of Prospect, attempting to induce Prospect to agree to forego exercising its rights in the event of a default. D.S.C. The Wellspring ruling was not appealed, nor has any trial occurred on this matter. Wellspring Capital is a boutique discretionary management service with a portfolio positioned for high performance. Despite that agreement in principle, it was alleged in relevant part that: Unable to agree on the release and indemnification issue, SportCos out-of-court restructuring failed, and SportCo defaulted on its funded debt shortly thereafter. They are not actionable. Designed By, https://www.wellspringcapital.co.uk/disclaimer. The plaintiff, however, asserts that federal conflict of law principles should govern what state's law applies in this case, because "[a] claim under 544(b) incorporates 'applicable law,' but it is a claim under federal law with a substantive federal law recovery scheme." There are also no allegations concerning expenses. They are simply not statements of preexisting fact that were false when made. The firm functions as a strategic rather than tactical partner, providing management teams with top-line support, M&A experience and financial expertise, and access to resources. Sav. articles a month for anyone to read, even non-subscribers! Environmental, Social and Governance (ESG), HVAC (Heating, Ventilation and Air-Conditioning), Machine Tools, Metalworking and Metallurgy, Aboriginal, First Nations & Native American. The Wellspring Defendants asserted all of these arguments and also asserted failure to state a claim under section 550 against certain defendants. In Fall 2018, SportCo Holdings, Inc. (SportCo) was facing severe financial distress. 1985). The Wellspring court was ruling on a motion to dismiss, and therefore accepted the plaintiffs somewhat barebones and perhaps self serving assertions as true and in the light most favorable to that plaintiff. Menu Home; Rankings. Fund VI brings the firm's assets under management to more . Casetext, Inc. and Casetext are not a law firm and do not provide legal advice.