PPG Files Motion to Dismiss Platinum Suit; Files
PPG Industries has filed a motion to dismiss the Platinum Equity
affiliates' lawsuit alleging fraud, negligent misrepresentation
and rescission causes of action. In addition, PPG is motioning that
the judge, who is yet to be assigned, strike the plaintiffs' demand
for punitive and exemplary damages and for restitution.
The original suit was filed in the Supreme Court of the State of
New York in the County of New York on December 27. In the suit,
the Platinum affiliates, Project Gamma Acquisition Corp. and 3217926
Nova Scotia Co., which were created in order to purchase PPG's auto
glass and services business, allege that PPG "misrepresent[ed]
and conceal[ed] the true facts regarding the financial condition
and performance of the company they owned and operated to fraudulently
induce [Platinum] to purchase the company at an artificially inflated
The motion is to be heard on February 11 at the New York County
Courthouse in New York.
In addition, PPG has filed a counterclaim against Platinum and seeks
"appropriate damages, including not only the $25 million 'break-up'
fee to which PPG is entitled under the [Asset Sale Agreement], but
also additional damages reflecting the economic harm suffered by
PPG as a result of the Platinum Equity entities."
PPG's counterclaim alleges that Platinum's complaint 'brazenly re-writes
and falsifies the parties' historical course of dealing, express
agreements and Platinum Equity's own professional capabilities."
The complaint goes on to read that Platinum's affiliates made no
attempt to file its complaint under seal or to maintain its confidentiality,
the Complaint discloses certain confidential
information regarding PPG and its customers."
HERE for the full text of the motion.
HERE for the full text of PPG's response and counterclaim.
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