On Saturday, January 20, 2024, a Florida court made the decision to temporarily block Cap10 Partners LLP’s attempt to take over a UK addiction treatment company. This decision came after Cap10 was sued for fraud and conspiracy by the UKAT Trust, the majority owner of the UKAT assets.
Cap10 and its partners now face a permanent injunction and potential damages of up to $132,000,000 as a result of the case. The complaint alleges that Cap10 has been attempting to unlawfully obtain ownership of UKAT by interfering with the company’s efforts to refinance its debt with a third-party. This tactic was used with the ultimate goal of purchasing UKAT’s assets at a discounted price below their actual value.
Furthermore, the complaint states that Cap10 has engaged in overt acts to defraud UKAT, including sharing confidential information gained during previous negotiations with third parties in an effort to lower the market value of UKAT and its assets. In response to these allegations, the Florida court has barred Cap10 from purchasing any stock or assets of UKAT.
Robert “Bo” Gaddy, the beneficiary of the UKAT Trust, expressed gratitude for the court’s decision to protect the Trust’s interests. “This fraud by Cap10 has been ongoing for over a year, and it is time for these bad actors to be brought to justice,” said Gaddy. He also stated that the Trust intends to pursue further litigation against anyone who participates in this fraud and conspiracy, including Cap10’s partners and investors.
Derick is an experienced reporter having held multiple senior roles for large publishers across Europe. Specialist subjects include small business and financial emerging markets.