Nashville Predators co-owner David Freeman is a mergers and acquisitions attorney, who made his money off the sale of a medical waste disposal company — then purchased what was initially believed to be a 48% stake of the Central Division NHL club.
Now, he’s suing the team for $250 million, to cover what he is claiming are damages, lost stake in the team and guaranty fees.
According to The Tennessean, the primary driving force behind the lawsuit isn’t against the Predators as an organization, but against team chairman Tom Cigarran, whom he claims was intentionally withholding financial information that hurt Freeman’s stakes in the team. Per the lawsuit, Cigarran has been engaging in ‘dishonest business practices’, both withholding the aforementioned financial information from Freeman and failing to honor loan guaranty fees from a loan he backed for the team’s original lender years ago.
“According to the lawsuit, Cigarran concealed financial details about the team that he was supposed to share with Freeman. Because he didn’t have the necessary financial statements, Freeman did not answer subsequent capital calls, which are a request for money from investors, according to the lawsuit. The Predators owners have an internal agreement to pay cash when needed to cover operations and other financial obligations.
After Freeman did not contribute to the capital calls, his shares in the team were diluted, and the other owners’ shares were increased, according to the lawsuit. Freeman is suing to have his original ownership stake in the Predators restored. Freeman’s stake in the team was at 48 percent before his shares began being diluted in 2010, according to the lawsuit.”
The Tennessean’s report did not obtain comment from either Cigarran or the Predators at the time of the report on the lawsuit.