PPG Files Motion to Dismiss Platinum Suit; Files Counterclaim, Too

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 purchase price."

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, "even though … the Complaint discloses certain confidential information regarding PPG and its customers."

CLICK HERE for the full text of the motion.

CLICK HERE for the full text of PPG's response and counterclaim.

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