LoanMart Co-Owners Sue in Delaware to Halt California Case

The founders of LoanMart, a leading issuer and servicer of car title loans, were sued in Delaware by the rest of its ownership group, which wants to stop their California lawsuit challenging the company’s restructuring.

The Chancery Court suit seeks a series of injunctions and declarations that would pause or end the California case brought by LM Holdco Inc., which holds the ownership interests of LoanMart founders Sam and Ron Gonen and other early investors.

The California suit targets LoanMart’s operating company, Wheels Investors LLC. It also names two of LoanMart’s parent companies, the four members of its board, and ...