PrimaLend’s Advice Led to $18 Million Losses, Auto Dealer Says

A Texas car dealership sued bankrupt PrimaLend Capital Partners, claiming the lender gave “self-serving” investment advice that caused at least $18 million in losses.

Simple Auto DFW in June 2024 hired PrimaLend to advise over whether it should make a bid for a $46 million portfolio of Adonis Auto Group assets, according to the complaint filed Wednesday in the US Bankruptcy Court for the Northern District of Texas.

PrimaLend failed to inform Simple Auto that the assets “could not possibly be made profitable” by even much larger dealerships and “certainly could not be adequately serviced by Simple Auto’s limited resources, ...