LOS ANGELES (PRWEB) October 07, 2014
Ethan Brown Law, LLP announced today that the firm has filed suit in Los Angeles Superior Court on behalf of Donray Graves, known professionally as Donray Von, against Pimco founder Bill Gross and his son Nick Gross for alleged breach of fiduciary duty, breach of contract, and promissory fraud, among other complaints of purported unlawful conduct, in connection with venture fund G Squared Media Holdings LLC jointly owned by Graves and Nick Gross. The lawsuit alleges Nick Gross depleted the company of $1.3 million. In the lawsuit, Graves is seeking his share of the company’s assets, as well as compensatory damages for the alleged loss of the pending investment opportunities G Squared participated in, and punitive damages.
According to the lawsuit, notwithstanding G Squared’s success, in May 2014, for reasons unknown, Bill Gross allegedly pressured Nick to shut down G Squared. Nick complied, the complaint alleges, appropriating G Squared’s media and investment opportunities for himself and his solely owned business STRZ Enterprises. Nick allegedly prevented Graves’ participation in a Bloomberg TV segment that Graves originally sourced for G Squared, and then, according to the complaint, suggested that G Squared’s investments were made through STRZ Enterprises. The lawsuit charges that Nick allegedly emptied G Squared’s bank accounts of more than $300,000 without Graves’ knowledge and authorization, removed Graves name from the bank accounts, and excluded him from all decisions on behalf of G Squared. In addition, Nick purportedly failed to repay G Squared $975,000 he took from G Squared, allegedly to fund his separate music business.
The complaint documents the partners’ working history and G Squared’s record of success: Graves and Nick worked together for a total of four years, the first two on music-related ventures. According to the lawsuit, the pair then launched an investment vehicle, G Squared Media Holdings, LLC, as 50-50 partners, securing a $3 million investment from Bill Gross. One of G Squared’s first investments, GYFT, was recently acquired for $50 million dollars, returning to G Squared more than double its investment in less than one year, says the lawsuit. According to the complaint, G Squared’s other investments are also poised for strong growth.
Nick Gross, a former reality star appearing on “Laguna Beach,” most recently participated with Graves on BRAVO TV’s “Married to Medicine,” where the partners invested in one of the show’s reality star’s dog accessories line, Quad Webb-Lunceford’s Picture Perfect Pups. http://www.bravotv.com/married-to-medicine/season-2/videos/quad-s-investors-aren-t-impressed Graves and Nick appeared on the season finale which drew millions of viewers. http://www.bravotv.com/married-to-medicine/season-2/videos/quad-s-puppy-fashion-show
Graves began his career consulting with music superstars such as OutKast, The Roots and K’naan. As CEO of the label that oversaw the release of Cody ChesnuTT’s critically acclaimed “The Headphone Masterpiece,” Graves brokered the deal that resulted in the album’s becoming the first album by an independent artist ever sold on Amazon.com.
A detailed summary of the Grosses’ alleged wrongful conduct is set out in the complaint filed against them, along with Bill’s wife Sue Gross and their company Monte Carlo, LLC. Graves v. Gross, BC559786 (LA Superior Court, Oct. 3, 2014).