English Premier League soccer team Everton saw a glimmer of hope when Miami-based 777 Partners agreed to buy it. But since then, the investment firm has been embroiled in a series of lawsuits accusing it of fraud worth hundreds of millions of dollars.
A case filed in New York by London-based asset management company Leadenhall Capital accuses 777 of misrepresenting its assets to secure over $600 million in financing from them.
The suit details that approximately $350 million in assets serving as collateral for loans were either not under 777’s control or had already been pledged to other lenders.
Defendants named in the lawsuit include 777 owners Josh Wander and Steve Pasko, as well as the firm’s lender Kenneth King and his company ACAP.
The suit leaves 777’s bid to acquire Everton in limbo. The takeover, announced last year, is already pending approval from the Premier League. The recent legal filing adds to its series of setbacks, including other lawsuits, corporate failures and unpaid bills.
Everton, currently 15th in the Premier League standings, faces financial strain, with net debt reaching approximately $413 million in June 2023.