Allied investors sue Yucaipa, union
Shareholders of Allied Holdings Inc. claim that billionaire Ron Burkle’s Yucaipa Cos. improperly conspired with the International Brotherhood of Teamsters union to gain control of Allied in Bankruptcy Court.
Hawk Opportunity Fund sued L.A.-based Yucaipa and the Teamsters in federal court in Atlanta on Monday, claiming that they violated state and federal racketeering laws by negotiating a reorganization plan without the knowledge of Allied, the biggest U.S. hauler of new cars.
The plaintiffs claim $200 million in damages, which may be tripled under the racketeering laws, they said in the complaint.
“We think that this suit is totally without merit,” Yucaipa lawyer Robert Klyman said.
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