AP Texas

Prime Automotive settles suit, selling dealerships for $880M

Published November 22, 2021 5:23 PM

BOSTON (AP) — Massachusetts-based Prime Automotive Group has signed a $30 million settlement with ex-CEO David Rosenberg, who was fired after raising concerns about financial wrongdoing. The Portland Press Herald reported Monday that last week’s settlement cleared the way for Group 1 of Houston to purchase Prime Automotive from New York-based GPB Capital Holdings for $880 million. After his firing, Rosenberg moved to sell his shares in the company, but filed suit in Massachusetts alleging he wasn’t fully compensated for the sale. GPB Capital’s chief executive has been arrested and charged with defrauding investors, and GPB also faces civil lawsuits.

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