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Silver Point Capital Affiliate Defeats Suit Over Stock Plan Deal

Aug. 17, 2022, 1:59 PM

Silver Point Capital affiliate SPCP Group LLC is free from litigation challenging a multimillion-dollar employee stock ownership plan transaction, after a California federal judge said the investment management firm had no reason to know the deal was potentially illegal.

KPC Healthcare Holdings Inc. stock plan participant Danielle Gamino failed to show that SPCP knew the transaction was based on an artificially inflated valuation of KPC and its stock warrants, Judge Stanley Blumenfeld Jr. of the US District Court for the Central District of California said in an opinion docketed Tuesday. It’s “undisputed” that SPCP wasn’t involved in plan trustee Alerus ...