LMP Automotive sues over held deposits in terminated acquisitions

LMP Automotive Holdings Inc. has sued two dealership homeowners, trying to find a mixed $3 million in deposits the vehicle retailer produced to obtain retailers and assets in New York and Texas. The lawsuits adhere to LMP Automotive terminating the bargains this year.

An affiliate of the Fort Lauderdale, Fla., retailer submitted a lawsuit May perhaps 27 in federal court in Albany, N.Y., towards James Zappone, Zappone Chrysler-Jeep-Dodge-Ram in Clifton Park, N.Y., Zappone Assets Management and an escrow agent looking for return of the $1 million deposit LMP had made for the acquisition.

On Friday, just two weeks afterwards, LMP submitted a lawsuit in federal court docket in Houston against Houston dealerships Tom Peacock Nissan and Tom Peacock Cadillac, companions David Peacock and Aldo Paret, and affiliated real estate businesses in search of the return of $2 million in deposits it made to purchase the dealerships and genuine estate.

The lawsuits are the most recent in a string of problems for the fledging car retailer and publicly traded corporation. LMP acquired its initially franchised dealerships final year, but in early 2022 it stated it planned to terminate 7 pending acquisitions for the reason that of incapability to receive wanted financing. It also mentioned it was discovering strategic possibilities for the retailer, together with a feasible sale of the company.

LMP, which has still to report economic benefits for the fourth quarter of 2021 and initially quarter of this yr, has explained it will restate economic results for the initial a few quarters of 2021. The company and executives also were being sued previous thirty day period by a shareholder seeking class-action position.

LMP mentioned in July 2021 that it planned to shell out $141 million to buy the Cadillac and Nissan dealerships from Peacock and Paret and that it would spend $19.2 million to buy the Stellantis brand name dealership in New York. Both of those deals were being to have bundled real estate.

In the New York lawsuit, LMP alleges that after its transaction did not near by Feb. 28, the seller “improperly” advised the escrow agent that the purchaser failed to close by the agreed on date, demanded the deposit be paid out to Zappone and objected to LMP’s efforts to have the deposit returned pursuing the March 21 agreement termination.

LMP contends that it was unable to acquire funding and maker approval to purchase the dealership and authentic estate.

In the Texas lawsuit, LMP claimed it also was not able to attain automaker acceptance and the transaction did not shut as prepared by Feb. 28. LMP reported it sent the sellers a detect of termination on March 29, when it also demanded the title business return the deposit.

LMP also is searching for it be awarded attorney service fees, bills and costs in the two lawsuits and also fascination in the New York case.

LMP CEO Samer Tawfik and LMP’s attorneys in the instances did not right away react to requests for remark.

Eleanore Beatty

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